Strategic Pricing

To get the most exposure and interest for the home that you want to sell, you have to strategically price it. No longer do homebuyers flip through newspapers and print ads for their next home, they now search online on REALTOR.com and other real estate websites. Back in 2006, the statistic was that more than 70% of homebuyers used the internet in their search for their next home, and I’m pretty much betting that that statistic is much closer to the 90% range today. So as a homeseller, the placement of where your home will be should be one of your top concerns. Homebuyers search for properties in price ranges, be it in increments of $25,000 up to $100,000.

Your Home is Not a Hamburger!

The way prices work in the supermarkets and your favorite fast food restaurants do not work in the real estate industry. Some homesellers and agents have a knack to price their properties with a bunch of 9’s in the mix, such as $299,000. Does that price entice you? Do you think pricing a home like that is a smart move?

That’s not a smart home pricing practice, and let me tell you why. When a homebuyer searches online from the price range of 200K to 300K, yeah, your home is going to show up in the search results. But what if a homebuyer were to search in the 300K to 350K price range? You end up abandoning a whole group of prospective buyers of your next home all because $1,000!

When you’re selling your home, it’s crucial to get maximum exposure for your property. You might be thinking, “ah, big deal, Ron,” but let me assure you, the property browser that was abandoned could possibly have been a likely candidate in buying your home. As a homeseller, you cannot discriminate on who sees your property, and also, you cannot expect all buyers to come to you. You have to position yourself properly and present yourself to all who are interested.

Sold Price Ranges

Within the market reports that the Tucson Association of REALTORs provides every month, you are able to find the statistics of sold price ranges. You can find for yourself which price range was the most actively sold within the month of the report you are looking into. So let’s say that the 200K to 250K price range is the most actively sold, with 250 sales per month. We can come to conclusion that most of the Tucson homebuyers are looking into homes within that price range. So if you had a home that was appraised at 198K, it might be smart to upgrade your property or offer an incentive to justify your price increase to enter in the popular price range of 200K-250K. And it’s the same situation if you had a home appraised for 254K… If you need your home sold, you might want to sacrifice some of your home’s price to be within the most popular price range.

This entry was posted on Wednesday, May 14th, 2008 at 7:40 pm and is filed under For Home Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.