you can set a higher price, but buyers already expect the roof to be in excellent shape. Proximities 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, or what the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A homeowner decides to place their home on the market and must determine an asking price. By rough estimate, the home’s market value falls between $1,000,000 a $1,000,000 and $1,050,000 d $1,050,000. Many homes are on the market. 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,” say to $1,075,000. The price will not entice a buyer but may make comparable homes seem more desirable . The home will likely sit on the market longer and may not sell at that price. • The “price it according to worth” approach. This strategy sets the price right between the market value benchmarks, at $1,025,000 $1,025,000. Home shoppers will see it as fairly priced, comparable to other homes in the area, and may assume they can negotiate within that range. • The "underpricing generates interest" approach. Pricing the home at $975,000 may attract more buyers, increase foot traffic, and potentially spark a bidding war. In the Bay Area, this strategy often results in multiple offers,
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