Price Ahead Of The Market

Shift Tactic #7 Pricing Ahead of the Market

 

There are only 3 ways to price: 

1. Ahead of the market

2. At the market

3. Behind the market

When a home isn't priced ahead of the market, you are essentially behind the opportunity curve. What a home is worth is the answer to a value question.

What a home will sell for is an answer to the sales price question.Do you want to sell for the maximum price now or do you want to sell for the maximum price period?In a seller's market, sellers dwell on the future and buyers dwell on the past. In a buyers market buyers want to place themselves in the future and the sellers want to dwell on the past. Its up to the real estate market to pull the seller forward not just to where the market is today, but where it is likely headed. When they reject an offer, they are in effect buying the home back at that price...with the expectation that they can resell it and get what they want for it.

Seven Maxims for Pricing in a Shifted Market

  1. Be a student of your market

  2. Focus your main comps on actives

  3. Be a student of the property - preview so you understand what is selling and why

  4. Keep your presentation as current as possible...ongoing research

  5. Prequalify for motivation - sellers who most need to sell, sell most often

  6. Price ahead of the market - to avoid chasing it

  7. Always secure price reductions in advance - to avoid falling behind the market