These are some pricing considerations and approaches to finding that “right price”: • The “leave room for negotiation” approach. In this approach, the list price is “stretched,” say to $305,000. However, most buyers choose their comfort level by ranges; i.e., $275,000 - $300,000. By adding that extra $5,000, your house won't come up during their searches. You will most likely get offers below your list price. • The “price it according to worth” approach. This approach sets the list price right between market value benchmarks, at $295,000. The perception is the sellers have done their research. You are likely to get multiple offers.
• The “underpricing generates interest” approach. Underpricing at $280,000 can motivate buyers and
perhaps create a bidding war but only if the perception is there is nothing wrong with the house. If showings are allowed to be scheduled (vs first viewings at an Open House) the first offer will probably be for the list price and have a short response time.
THE COMPARATIVE MARKET ANALYSIS
When it comes to finding a buyer, pricing your home based off of comparable real-priced sales is crucial to making the sale. The Comparative Market Analysis is imperative to pricing strategically. If completed correctly, this comparison report not only gives you a great listing price but also reduces the chance of your home being under-appraised. If you have a well-priced 51
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