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Home Sales Pricing and the Law of Attraction . . .
Home Sales Pricing and the Law of Attraction . . . I had been rolling 
around the idea of writing a blog post on “Pricing Right” for the home seller when I found myself with time to kill in the Raleigh/Durham airport. Perfect I thought, I’ll sit here and outline this real estate pricing strategy post . About a page into it my flight was called.
So here’s where the Law of Attraction comes in. Figure the odds of this. Of all the people on this airplane, where does the one gentleman who is traveling to Florida to sell his mother’s home sit? You guessed it, right beside me.
After the introductions were made and he learns I’m a Realtor – not only a Realtor, but a Florida Realtor, he exclaims, “It’s my LUCKY day.” Hmmm . . . maybe . . . I think.
Here’s what he told me. He listed his mother’s property just over six months ago. (So, in this SLOW market it has already been on the market six months.) Of course it’s in perfect shape, best home in the neighborhood, etc. He’s on his way to meet with his Realtor and find out why it hasn’t sold.
But, you know me. When asked, I told him why. Why? It isn’t priced right. Pure and simple. It just isn’t priced right.
I asked how he arrived at his price originally. He said his Realtor gave him a number and then since the Realtor pointed out that the house needed a new roof, he got an estimate and then added this amount to the price. “And what did your Realtor say about that?,” I asked. “Well, he said I that might be a little high.” Hmmm . . . (Again!)
“And what has he said since then?,” I ask. “Well, just that he’s showing it. There’s not much traffic.” Hmmm . . . (Again!)
So here’s my philosophy on pricing:
- Always give the Sold and Pending homes more weight than the Active homes when setting a price.
- The Market, and the Market alone, ultimately determines the sales price.
- Know the number of months of inventory in that particular neighborhood (or market) and make sure the seller knows.
- The home must be one of the top two or three BEST priced homes in terms of the competition or it WILL NOT SELL.
Here’s what happens. It’s VERY, VERY simple. Buyers give their Realtor their price range and “must haves.” The Realtors – and today the Realtors and the Buyers given the access to listings on the internet – select the homes to see. The top value homes – read lowest price for the same features – get the most attention. And these are the ones that sell most quickly. Remember, more homes are coming on the market each and every day, so a good Realtor – even a merely competent Realtor – is keeping track of where the home stands vis-a-vie the competition.
So, fortunately the home this gentleman is trying to sell isn’t in my market. Because, I had to tell him it was time to fire his Realtor and look for another, and this time listen to them from the Get Go!
And as far as the Law of Attractions goes, when it’s priced right it is guaranteed to attract a buyer. Happens EVERY time!
More Posts on Real Estate Pricing:
Silver Lining to the Harsh Realty Reality . . . Price for the Market
Creative Real Estate Marketing or Just Plain Silly?
Information presented here contains the information and opinions gathered by Robin Sherman, MA, CRS, Broker and is accurate to the best of her knowledge
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