As REALTORS, many of us struggle from time to time with the pricing of a new listing. What is the RIGHT PRICE? How do we keep the Seller happy but still PRICE IT RIGHT?
Every REALTOR has their own strategy, and it can often take a lot of research and a visit to the property to come up with the right price. Then we have to ask the Seller what price they had in mind, and it can get complicated if you’re not on the same page. Some sales representatives are able to price the home properly, right from the start. Other times a property is overpriced. Each potential listing is a unique endeavor.
John and I do a great deal of research and prep work before arriving at a price. On two occasions in the past month we’ve been talked into starting a little higher than we wanted to. You know those famous last words: ‘We can always reduce in a few weeks. Let’s just try our price, what could it hurt?’
Well, it can prevent the Seller from getting the home sold quickly. In the first instance we overpriced by a little bit, had lots and lots of showings, but just didn’t get any interest. After two weeks we lowered the price by $13,000 and had a good offer within a couple of days. I keep track of on-line views of our listings and how many searches are set up by Realtors for their Buyer clients, and before the price reduction this listing had 46 search matches through MLS. After the price reduction this home had 403 matches!
In the second instance, we priced higher than we were comfortable with, and the home got very few showings. Great photos, great marketing, but no one wanted to see the home. So, after two weeks we lowered the price by $20,000, and had an offer almost immediately! Before the price reduction this home had 67 search matches linking them to prospective buyers. After the price reduction this number jumped to 426!
Generally we’re able to stick with our gut and price the home where we know it will get the best exposure and bring in the most quality showings. Sometimes we bend a little at our Seller’s request, just to see what happens…
It’s always better for everyone involved to get the Price Right the first time! If you have any questions about your experience with pricing or would like us to visit your home for a no obligation market assessment, just let us know. You can reach John Weber anytime at 705-727-6111 or by email at John@JohnWeberTeam.com. You can reach me anytime at 705-220-1152 or by email at Christie@JohnWeberTeam.com.