Shift Tactic #7 Pricing Ahead of the Market
There are only 3 ways to price:
1. Ahead of the market
2. At the market
3. Behind the market
When a home isn’t priced ahead of the market, you are essentially behind the opportunity curve. What a home is worth is the answer to a value question.
What a home will sell for is an answer to the sales price question.Do you want to sell for the maximum price now or do you want to sell for the maximum price period?In a seller’s market, sellers dwell on the future and buyers dwell on the past. In a buyers market buyers want to place themselves in the future and the sellers want to dwell on the past. Its up to the real estate market to pull the seller forward not just to where the market is today, but where it is likely headed. When they reject an offer, they are in effect buying the home back at that price…with the expectation that they can resell it and get what they want for it.
Seven Maxims for Pricing in a Shifted Market
Be a student of your market
Focus your main comps on actives
Be a student of the property – preview so you understand what is selling and why
Keep your presentation as current as possible…ongoing research
Prequalify for motivation – sellers who most need to sell, sell most often
Price ahead of the market – to avoid chasing it
Always secure price reductions in advance – to avoid falling behind the market