Pricing your home is more than just completing a Comparative Market Analysis (CMA). It is both a science and an art. Both of which I will employ to ensure that we price your home accordingly. As I’ve mentioned before arguably the two most import components of selling your home are price and exposure.
My goal is to help you sell your house and not to test the market. It’s critical that we are confident in the price that we establish such that we won’t need to change it unless we have experienced a sudden change in the market or condition of the home in which we need to adjust quickly and accordingly, or in order to strategically execute a plan to achieve a short sale or some other non traditional transaction .
Each strategy and plan to sell your home will be determined uniquely based on your home and it’s specific location along the state road 54 and 56 corridors. In general the process will be as follows.
First, we’ll first consider the direction of the market based on data and ask ourselves the questions,
1. Are prices in the area increasing or decreasing?
2. Are there economic factors on the horizon that will affect the perception of the price of our home such as the traffic on state road 54/56 or affect buyers purchasing power such as rising interest rates?
Second, we’ll do a CMA by selecting the most appropriate properties in your neighborhood to set our baseline price. As part of the CMA we’ll ensure that we are adjusting based on the special features of your home as compared to others. My philosophy in using comparables is to only use properties that have sold within the last year or those that are currently active with contract. As I indicated, it is not my intention to “test the market”, it’s my intention to help you sell your property. As a result of different pricing strategies by realtors and without knowing how those pricings have been derived, we posed the risk of over pricing our properties by considering them. However with that said in few cases when there are not enough recently sold properties in the area I may carefully consider active listings in order to round out our CMA.
Third, we’ll ten consider your timing, whether or not we need to sell quickly below the average days on market or if we have time for the market to takes it’s course and sell a few days before or after the average days on market.
And finally, we’ll then consider the Psychology of pricing as can be seen here,
http://www.inman.com/2015/04/17/the-psychology-of-pricing-a-real-estate-property/ and identify a price (series) of numbers that will psychologically work we’ll for our potential buyers. For years retailers have priced products by avoiding round numbers as in 249,999, in years past this may have had the intended psychological effect of looking like a discount, but things have changed and purchasers are infact a bit more savvy. As more and more buyers are starting their home search online this pricing strategy could have a damaging effect. For instance, if we price your home at 249,999 qualified buyers may miss your home when they use home search egines. Your property would not be displayed if the buyer enters 250,000 - 300,000. We’ll ensure that we avoid these types of mistakes, we’ll also utilize numbers such as 7 and 4 which have shown to be more user friendly than others.