Pricing Is Critical in Buyers Market

With the changing real estate landscape, our fiduciary obligation to our clients is more valuable to our clients than ever before. For the past 5 years, it has been relatively easy to price a property. A check of other closed (during the last 4 months), under contract and properties currently on the market in the Multiple Listing Service, adjustment for improvements and add 5-10% was a quick evaluation of an anticipated sales price.

Today, pricing has never been more critical or difficult. Some sellers refuse to accept that prices have leveled off and use their friends’ or neighbors’ home sale from a year ago as their benchmark. Others, recognizing the changing market, are confused about deciding on a price.

In a transitioning market, perceived value is more important than price. Compared to other homes listed, it’s not only the square footage, neighborhood, bedrooms and baths which entice a buyer. The over all condition of the property indicates how much money the buyer will have to invest in updates to make this property compelling. Landscape, replacements less than 2 years old, bath and kitchen renovations all add greatly to the value of the home.

The right price will excite buyers – creating an urgency and competition to the sale. Be prepared to re-price early and often. Days on the market, the number of showings, new listings and seller motivation triggers on-going price evaluation until you get a good offer.