How do you price a home in this current Buyer’s Market? Actually, the right question is: How do you price a home correctly in this current Buyers’ market? The use of standard tools such as comparables is irrelevant these days.
Simply: You must price the home for less than the active competition to gain any traction. There are very few exceptions to this new paradigm. Price is the current king.
A common mistake is the notion that someone who is less eager to sell a home quickly can set the price a little higher. In this market, the lower price is more “realistic” to the limited number of buyers in the marketplace.
A good suggestion for any seller (and the agents who are helping sell the home) is to look hard at the three or four most competitive active listings that the home seller will be facing. Be brutally honest; today, the homes are a commodity first and an emotional luxury second. If there are no real differences between those houses and the seller’s home, undercut the competition on price. It is not only your strongest tool, it is your only tool at this time.
If the house you’re trying to sell has something that the competition doesn’t — say an enclosed lanai or bonus room — then go with the same price. But, you must demonstrate the value to be at the same price.
This new paradigm (today’s reality) is common sense when you have the luxury of looking from the outside-in and without the emotional haze many home sellers face. If you do not have the correct perspective, perhaps you should call someone you can give you an honest perspective of your options.
For more information on this and many other helpful real estate-related issues, review the White Gate Realty Newsletter, or go to my website where the information is accurate, FREE and no obligation to you: www.WhiteGateRealtyTeam.com.
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