Pricing Strategies
Aggressive Pricing - Strategic tool: When property is offered below market value, this pricing strategy can be a useful tool to encourage a fast sale and will generate the maximum market exposure to the property.
Speculative Pricing - High risk for seller: Overpricing originates from the belief that a seller can always come down in price. While it appears to be a conservative decision, it actually fosters risk because:
- Brokerage activity (showings) decreases when a property is perceived as being priced out-of-the-market
- Exposure is greatly reduced buyers wont even look at a property if it is out of their price range
- It lowers the critical new inventory excitement level
- It will becomes stale inventory or shop-worn even after a price reduction
- The price cant be justified by an appraisal for financing even if an offer is made
- It lengthens market time, which often results in a lower selling price than would have otherwise been attained
Competitive Pricing - The Pricing of Choice: Allows room for negotiation without sacrificing exposure!
- Maximizes early weeks of peak interest and activity
- Attracts more potential buyers in acceptable price range
- More likely to attract higher offers
- More likely to attract multiple offers
Seller Orientation Menu
Information herein believed to be accurate but not warranted.
