to be in excellent shape. Proximity to schools, bus routes, and medical facilities can create value that certain buyers are willing to pay for. Buyers look for the right deal, but what they are willing to pay k is willing to finance has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A homeowner decides to place his home on the market and must decide on an asking price. The home’s market value falls between $290,000 and $300,000 by rough estimate. Many homes are on the market. Consider that if people are searching for homes up to $300,000, your $300,001 home won't even show up! You'll see homes priced just above a common price point are often the ones that sit on the market for months.
These are some pricing considerations and approaches to finding that “right price”:
• The “leave room for negotiation” approach. In this approach, the market value is “stretched” to $305,000. The price will not entice a buyer but may make comparable homes more desirable. The home will most likely not sell quickly or at that price. • The “price it according to worth” approach. This approach sees the price set right between the market value benchmarks at $295,000. Home shoppers likely lump the home with like-priced homes, knowing they can buy anytime for $295,000. • The “underpricing generates interest” approach. Underpricing at $280,000 will motivate buyers and perhaps create a bidding war. But the goal of selling the
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