Strategies Used To Price Homes
[/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Sellers often make the mistake of wanting to price their homes high at the start, with the assumption that they can always reduce the price to a more realistic level later. However, interest peaks when your home is new on the market and drops off dramatically as time goes on.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_image src=”https://cindybanksteam.com/wp-content/uploads/2018/05/making-the-most-of-intial-interest-01-01.png” align=”center” align_tablet=”center” align_last_edited=”on|desktop” admin_label=”Image” _builder_version=”3.23″ max_width=”85%” max_width_tablet=”100%” max_width_phone=”” max_width_last_edited=”on|desktop” animation_style=”slide” animation_direction=”left” animation_duration=”500ms” animation_intensity_slide=”10%” use_border_color=”off” border_color=”#ffffff” border_style=”solid” animation=”left” sticky=”off” always_center_on_mobile=”on”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row admin_label=”Row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]The single most important factor in the marketing of real estate is the opinion of value. Property priced too high will sit on the market and become “shop worn”. Ideally, the property should be priced at the Comparable Market Value. Studies continue to show that a property listed at 15% over market value has a 20% probability of sale; 10% over market value has a 30% probability of sale; 5% over market value has a 50% probability of sale. Properties priced at market value have a 95% probability of sale.
The method most often used in evaluating single family homes is the Comparable Method. A property is worth what the buyer is willing to pay for it and this is determined by the basic laws of supply and demand. These two factors are evaluated by comparing the home with similar homes that have sold within the market area, with appropriate consideration given to location, amenities, lot size, condition and financing terms.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row admin_label=”Row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” column_structure=”1_2,1_2″][et_pb_column type=”1_2″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_image src=”https://cindybanksteam.com/wp-content/uploads/2018/05/opinion-of-value-02-03.png” align_tablet=”center” align_last_edited=”on|desktop” admin_label=”Image” _builder_version=”3.23″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” animation=”off” sticky=”off” always_center_on_mobile=”on”][/et_pb_image][/et_pb_column][et_pb_column type=”1_2″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”60px|||” custom_padding_tablet=”45px|||” custom_padding_phone=”40px|||” custom_padding_last_edited=”on|phone” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]The resulting range is known as the Comparable Market Value of the subject property:
- Asking Price is 15% more than Market Value
- Asking Price is 10% more than Market Value
- Asking Price is 5% more than Market Value
- Asking Price = Market Value
The percentage of prospective buyers who will look at the property.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
