On-Target Pricing Philosophy
Goal: To select a price that is right on target and generates offers.
Rules of Thumb:
- If you are getting showings but no one is writing an offer, it generally means that you are in the range of four to six percent 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 your home is between six and twelve percent overpriced.
- If no showings are happening at all, then your house is likely priced twelve percent or more above what the market will bear for your property.
How will I know if my home is priced correctly?
Although I will do everything I can to sell your home quickly, at the best price, and with no hassles, the one thing I cannot control or change is the market.
Even though I know how valuable your home is, the value of your home from a selling standpoint will be determined solely by the buyers. Therefore, I have generated the following "levels of seriousness" to help give you better knowledge of whether or not your home is priced correctly. And 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.
I 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 realize your real estate goals as quickly as possible.
"MAYBE THIS SELLER ISN'T SERIOUS" LEVEL
SYMPTOMS: 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.
"IT'S OKAY...BUT I THINK I'LL KEEP LOOKING" LEVEL
SYMPTOMS: Either ten to twelve showings and NO offers or just a few showings. The number of showings has slowed down since the first few weeks when the listing was initially placed on the market or the home has been on the market for four to six weeks with no offers. Potential buyers believe that they can still get more house for their dollar and are willing to keep looking.
"THIS IS IT!" LEVEL
SYMPTOMS: Showings, second showings, and offers in the first four to six weeks. 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 and best values on the market and that the price supports their belief that your house might be their next home! They are ready to buy!