If you just spent $35,000 to replace your roof, you might think you can set a higher price. Buyers already expect the roof to be in excellent shape. Proximities to schools, transportation, and medical facilities can create value for which certain buyers are willing to pay. Buyers look for the right deal, but what they are willing to pay, or what the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your property and the foundation of successful negotiation.
PRICING STRATEGIES THAT STRENGTHEN YOUR POSITION
A homeowner decides to place their property on the market and must decide on an asking price. By rough estimate, the market value appears to be all between $750,000 and $850,000. There are many houses on the market. Below 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," say to $900,000. The price will not entice a buyer but might make comparable properties more desirable. That house 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 $800,000. Likely, buyers will lump the property with like-priced homes, knowing they can buy anytime for that price. • The "underpricing generates interest" approach. Underpricing at $745,000 will motivate buyers and perhaps create a bidding war.
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