THE ON-TRACK PRICING PHILOSOPHY:
THE GOAL: To select the price and strategy that is right on target to generate maximum interest and to generate offers.
THE RESULT: Sold for maximum price, minimum time, minimum stress, sellers live happily ever after.
Ideally and Preferably this will in the first 4-5 weeks!
WHY? – as this is when the property is worth the most and when our best chance to get the highest price exists.
RULES OF THUMB: (Based on nearly 20 years of anecdotal experience in all markets and price points).
- If you are getting showings but no one is writing an offer:- it generally means that the property is in the range of at least 5-7% above market price).
- If your number of showings is low and you’re experiencing a lot of drive-ups but the buyers don’t come in to see the home:- then the property is at least 7-10% overpriced.
- If no showings are happening at all:- then the property is likely priced 10++ % or more above what the market will bear for the property.
How will I know if my home is priced correctly?
The best barometer is ENQUIRY, INSPECTIONS and OFFERS.
- Ultimately, we know because the HOME SELLS.
- Although we will do everything we can to sell your home in a reasonable timeframe
- At the best price, with no hassles, the one thing we cannot control or change is the market
- Even though we know how valuable your home is
- The value of your home from a selling standpoint will be determined solely by the Buyers.
Therefore, we have generated the following “levels of seriousness” to help give you better knowledge of whether or not your home is priced correctly.
- Remember, even if it is priced correctly today, any fluctuation in the market
- Needs to be monitored to make sure that your home is neither overpriced nor underpriced.
We will communicate with you throughout the time your home is on the market.
- To help you understand what is happening with the market
- So that you can make the decisions that will help you realise your real estate goals as quickly as possible.
THE THREE (3) LEVELS OF INTEREST/ ENGAGEMENT FROM BUYERS.
LEVEL ONE- “MAYBE THIS SELLER ISN’T SERIOUS” LEVEL…
- Limited/ few or no showings and no offers.
- The agents and potential Buyers are not interested in even seeing your home because they believe they can buy more for their dollars elsewhere,
- OR they are “Shocked” based on the initial asking price to perceived value question so dismiss without looking
- The ultimate rejection. PRICE SHOCK!
2) LEVEL TWO- “IT’S OKAY…BUT I THINK I’LL KEEP LOOKING” LEVEL…
- Either ten to twelve showings and NO offers
- And/ or just a few showings and/ or three home opens and no offers or low offers
- And/ or the number of showings has slowed down since the first few weeks when the listing was initially placed on the market
- And/ or the home has been on the market for four to six weeks with no offers
- And/ or potential buyers believe that they can still get more house for their dollar (better value) and are willing to keep looking/ At the very least they want to keep their options open.
LEVEL THREE- “THIS IS IT!” LEVEL (“Wow this home is good value”)…
1. Showings, second showings,
2. Offers in the first four to six weeks.
3. Congratulations!…We are at the level where you want to be;
- You have placed your house on the market at the right price.
- At this level, we should be able to hold within just a few percentage points from where the home is currently listed.
- Potential purchasers believe that your home is one of the nicest homes…
- & best valued on the market…
- & that the price supports their belief that your house might be their next home!!!
- They are ready to buy!
It is important we read, interpret and respond to market conditions if we are to remain a relevant property in the current market.
I remain committed to the process and I look forward to helping you achieve a great result in the coming weeks ahead.
Thank you for your business and continued trust.