Pricing. Indeed!
Perspectives I’ve heard:
- “We can start there and then always negotiate down, right?”
- “We don’t have to sell, so lets just see what happens”
- “We have one of the best views on the lake”
Now, what you want from your broker pro is:
- Data and feedback of experiences, yes
- Opinions, not really
- Can those ‘Perspectives’ above be valid?…., perhaps 2 of them.
After 3+ decades as a 2nd generation broker/ and 5+ decades as a lake resident, I’ll start by quoting broker/father “when you overprice, you take the home off the market”. Both with financial degrees, we’ve both offered more of a ‘numbers’ perspective to clients. In my case, I may updates your calculations a number of times during marketing of your property. This gives you as much useful & timely information as possible. Better yet, I keep all of your files and calculations viewable 24/7. Your documents, marketing plan, feedback stats, and current market valuation data are in YourSpace, a personalize web portal, not lost in your emails, texts, and paper files.
So how do we approach pricing?
Per the spreadsheet screen capture above, not all properties should be evaluated using the same method(s). For homes in areas of high similarity (e.g.: same basic age/ size/ style/ school district) I’ll lean toward one method, where dissimilar homes require a different valuation model. Most other valuation approaches I’ve seen ignore 2 very critical data inputs that I find a must.
Another key part of pricing: Going public with overpricing can have negative results. So whats the answer?
- Start realistic (and know what that is)
- Pre-plan price adjustments (and have data to pre-plan when they are best)
- And/ or – have complete control over ‘going public’, with not only a marketing plan, but with a timed roll-out over who will see what, when and know why it makes a big difference from your negotiating perspective.
Like some more information?
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