Pricing A Property So It Sells
As a realtor, you realize that property price determines the level of interest in a property you’re selling. From the quantity of showings, to the number and nature of offers, to the manner in which clients rate your services, price is vital. Shockingly, it is also something about which clients have extremely strong opinions—understandably so. They need a price that nets them the appropriate measure of money, reflects improvements they’ve made, and captures some of their nostalgia for the home. It is occupant on you as the real estate agent to walk the troublesome line between pleasing the seller and setting a price that reflects true market conditions. This article teaches you how to set a price that reflects real-time, location-specific market realities while still obliging your clients.
The Problem: Inconsistent pricing strategies
Executing a fact-based pricing strategy addresses several challenges that realtors confront:
Realtors list a property at the highest price possible to please the seller
Sellers contend that the price is too low (or doesn’t mirror the amenities and features)
Banks won’t advance on a price set higher than the appraised esteem
The Solution: The 5-5-5 strategy
A successful pricing strategy is the 5-5-5 strategy. By distinguishing 5 practically identical active properties, 5 similar pending properties, and 5 tantamount sold properties, the pricing will be precise.
Step One: Pick comparables
Make sure to pick comparable properties that have the same features, parcel size, and square film, that are situated in the same zone:
- 5 Actives
- 5 Pendings
- 5 Solds
Step Two: Bracket the price
- Discover comps that match the lower price
- Discover comps that match the higher price
- Pick a range inside which you’re willing to list the home
- Pick an objective price you feel is proper
- Pick a price that you wouldn’t go above
Step Three: Show sellers the section amid the listings presentation (however not the genuine price)
Put the comparable properties before the sellers and let them pick the price.
In the event that you show them the facts, they can’t contend. Facts remove feeling from the discussion. This puts the responsibility on the seller to distinguish the price.
Why the 5-5-5? What to say to sellers about pricing
Keep in mind, the objective here isn’t to tell sellers their home is justified regardless of the highest price possible. It’s to tell them the truth.