By Destry & Shelley Johnson
One of the biggest challenges we face every day is pricing real estate to sell quickly, yet at the highest price possible. It is particularly crazy in the market we are in. The following are some of the keys that we use to help our clients get every dollar they can…
1. Remember, an agent has no control over the market, only the marketing plan.
2. Never select and agent based on price.
3. Pricing in rising and falling markets: overpricing in a rising market may be OK, however slow; overpricing in a falling market is disastrous. Market trend is as important as pricing, make sure your agent understands market trends.
4. Four kinds of numbers used to represent your property: A. cost–What was paid plus capital improvements, B. price–what the seller wants, C. value–what the buyer is willing to pay, D. market value–what a willing buyer and seller will agree upon.
5. Regression and progression: A. regression–the phenomenon of an expensive house being decreased in value because of the lesser desirable homes around it. B. progression–the phenomenon of a home selling for more than its worth because of having more expensive property or a more desirable area around it.
6. Substitution: the value of an amenity is based upon what it will produce, not what it costs.
7. Reasons for overpricing: A. over improvement a seller cannot select, add to their lifestyle, enjoy it and expect the buyer to pay the original cost. B. need the need for money does not increase value. C. seller will be buying in a higher priced area. D. sellers original purchase price was high. E. looking for bargaining room. F. move is not necessary.
8. Benefits to proper pricing: A. faster sale which will save carrying costs and time. B. less inconvenience. C. exposure to more prospects. D. increased salesperson response. E. better response from advertising calls. F. attracts the highest offers. G. means more money to sellers.
These pricing strategies help to show a potential roadblock between you and your goals. Our job is to identify these potential pitfalls and eliminate them. Deciding on the correct price requires a home owner to have expert advice to make sure the homeowner gets the highest possible price for their home in the shortest amount of time.
“Destry and Shelley Johnson, Broker and Owners of Ranch & Coast Real Estate, Temecula, Ca. have been leaders in real estate sales in the Temecula Valley for over 20 years.” “Having begun their real estate career in Orange County they relocated to Temecula in the late 1980’s.” “The Johnsons became top producers in their former company before starting Ranch & Coast Real Estate where they continue to set the gold standard for production and customer service, successfully closing over 1,600 transactions”