BUYER DETERMINES VALUE !!
- What you paid for your property does not effect its value.
- The amount of money you need to get out of the sale of your property does not effect its value.
- What you think it should be worth has no effect on its value.
- What another real estate agent says your property is worth does not effect its value.
- An appraisal does not always indicate what your property is worth on the open market.
The value of your property is determined by what a ready, willing, and an able buyer will pay for it in the open market,
which will be based upon the value of other recent closed sales. BUYER DETERMINES VALUE !!
BENEFITS OF PROPER PRICING:
FASTER SALE: The proper price gets a faster sale, which means you save on mortgage payments, insurance,
and other carrying cost.
LESS INCONVENIENCE: As you know, it takes a lot of time and energy to prepare your home for showings,
keep the property clean, make arrangements for children, and generally alter your lifestyle. Proper pricing shortens
market time.
INCREASED SALESPERSON RESPONSE: When salespeople are excited about a property and its price, they make
special efforts to contact all their potential buyers and show the property whenever possible.
EXPOSURE TO MORE PROSPECTS: Pricing at market value will open your home up to more people who can afford
it.
BETTER RESPONSE FROM ADVERTISING: Buyer inquiry calls are more readily converted into showing appointments
when the price is not a deterrent.
HIGHER OFFERS: When a property is priced right, buyers are much less likely to make a low offer, for
fear of losing out on a great value.
MORE MONEY TO SELLERS: When a property is priced right, the excitement of the market prodcues a higher
sales price in less time. You NET more due to the higher sales price and lower carrying costs.
DRAWBACKS OF OVERPRICING:
REDUCES ACTIVITY: Agents won't show the property if they feel it is priced too high.
LOWER ADVERTISING RESPONSE: Buyer excitement will be with other properties that offer better value.
LOSS OF INTERESTED BUYERS: The property will seem inferior in amenities to other properties in the same
price range that are correctly priced.
ATTRACTS THE WRONG PROSPECTS: Serious buyers will feel that they should be getting more for their money.
HELPS THE COMPETITION: The higher price makes the others look like a good deal.
ELIMINATES OFFERS: Since a fair priced offer will be lower than asking price and may insult the seller,
many buyers will just move on to another property.
CAUSES APPRAISAL PROBLEMS: Appraisers must base their value on what comparable properties have sold
for.
LOWER NET PROCEEDS: Most of the time an overpriced property will eventually end up selling for less
than if it had been property priced to begin with, not to mention the extra carrying cost.
