Choosing the right list price

[Joe Crawford]

Real Estate Matters - December 17, 2007.


One of the most critical factors in selling a home quickly and for a
good final sale price is choosing the right list price. There are
several different approaches you can take to determine the right price
for your property. Which one you choose depends on what strategy you
want to use to attract buyers, and also how much risk you're prepared
to take in order to attract offers.

Many homeowners simply want to list their property at the highest
price they believe the market can bear. They've seen what a few
properties are selling for in their neighbourhood and then add an
arbitrary percentage to reflect where they think the market will be by
the time they sell in a month or two. This rather optimistic approach
is favoured by sellers who want to 'test the waters' to see just how
high the market might go. They think they can try the high end price
first and adjust it downwards later if they don't get results. As any
Coldwell Banker (R) professional can tell you, this strategy can be a
costly mistake. Overpricing your listing can have several potentially
damaging repercussions. Salespeople will be less likely to recommend
it to potential buyers, so you'll get fewer viewings. They may pass it
by in favour of other, more competitively priced listings, and in very
little time, they'll simply forget about it. Fewer viewers means fewer
opportunities for your sales professional to convert those prospects
into buyers.

Trying to solve the problem with later reductions in the list price
simply doesn't have the same impact as pricing it right the first
time. In fact, sometimes the opposite is true. Going through price
reductions means your house is on the market for a longer time. And
the longer it's on the market, the more suspicious buyers become that
something must be wrong. It's human nature. This means you may have to
lower your price even further to get action.

The ideal strategy to stimulate buyer interest is to set your initial
price either at, or even slightly below market. In fact, in a very
high demand area, it may even be preferable to list the most sought-
after properties at an under-market price. This is done to encourage
the seller's dream scenario - the multiple-offer bidding war.

How do you know what approach is right for you and your property? This
is where the experienced Coldwell Banker sales professional proves
their value. Your Coldwell Banker salesperson can prepare a
comprehensive market analysis to help you arrive at the right list
price. Not only will this report show you what comparable homes in the
area recently sold for, it will also show you current listings now on
the market. This is your direct competition - the properties you're
competing against for buyers, so choose your price accordingly. And
remember to look closely at those expired listings. This shows you
what prices the market will not bear. Your Coldwell Banker
professional will help you make an informed choice that's right for
your market. ]

When you're ready to sell, call me for your FREE MARKET EVALUATION at
(519)742-5800 ext 2117. I will show you all your options and provided
you with honest expert advice.



Joe Crawford
Real Estate Sales Representative
Coldwell Banker Peter Benninger Realty, Brokerage
www.kitchener-waterloo-homes.com