The price is right? Presented By: Clara Lee Coldwell Banker Residential Brokerage Palo Alto Midtown.
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Transcript of The price is right? Presented By: Clara Lee Coldwell Banker Residential Brokerage Palo Alto Midtown.
the price is right?the price is right?
Presented By:Presented By:
Clara LeeClara LeeColdwell Banker Residential BrokerageColdwell Banker Residential Brokerage
Palo Alto MidtownPalo Alto Midtown
pricing strategiespricing strategies
Pricing your home is a complex task that requires the expertise of an experienced real estate professional. Consider the following:
• If the listing price is set outside of the proper parameters, potential buyers may be deterred from considering your home
• Arriving at the optimal listing price requires evaluation and understanding of current marketing conditions, the marketable features of your home and recent trends in the real estate market
• The closer your home is priced to fair market value when it first comes on the market, the more likely it will sell quickly at the highest price
• The higher your home is priced above market value, the fewer number of available buyers
We will advise you of the following factors when assisting you in
determining a listing price for your home:
• What have buyers recently paid for
similar properties and DOM?
• Will this price attract enough
attention by buyers to generate
showings and acceptable offers?
• What properties are competing for
the attention of buyers right now?
• What properties have not sold,
indicating what prices buyers are
unwilling to pay under
current market conditions?
pricing strategiespricing strategies
determining the list pricedetermining the list price
We will help you determine the list price of your home by providing you with a thorough market analysis. It is a skill where experience and judgment are fundamental. Some of the factors that influence the list price of your home are:
• Physical Qualities – Location, floor plan and style• Market Conditions – Interest rates and availability of financing, buyer and
seasonal demand, state of the economy and recent property sales (appraisals)
• Competition – Number, pricing, condition and location of comparable properties on the market
The price you paid for your home or the proceeds you want from the sale have no effect on the value of your home.
the effects of the effects of overpricingoverpricing
Overpricing your home will
attract fewer potential buyers
and may cause it to sit on the
market for longer than desired.
To the buyer, too much time on
the market indicates an
overpriced property and often is
perceived as an opportunity to
negotiate a price lower than the
market might typically bear.
the effects of overpricingthe effects of overpricing
Pricing your property outside of the reasonable range can have the following adverse results:
• Low level of brokerage activity – showings decrease when a property is perceived as being priced “out-of-the-market”
• Reduction in exposure – fewer buyers will view your property because it is out of their price range
• Difficulty in obtaining financing – Lenders look at fair market value to determine the amount they will finance and often require the buyer to make up the difference in cash
• Increased market time – your property is viewed as overpriced and becomes “stale,” even if price reductions are implemented
potential buyer pyramidpotential buyer pyramid
Statistics have shown:
• There is a 95% chance of sale if a
home is priced at market value
• There is a 50% chance of sale if priced
at 5% over market value
• There is a 30% chance of sale if priced
at 10% over market value
• There is a 20% chance of sale if priced
at 15% over market value