By Richard Brody
Those homeowners, who have made, the often - difficult, emotionally challenging, decision, to sell their homes, often interview, various real estate professionals, who present, a Listing Presentation. While the seller should ensure he hires the best agent. for his personal needs, property, and situation, he must proceed, carefully, and avoid focusing on, what, these people, suggest, as their listing price! With that in mind, this article will attempt to briefly examine, discuss, and review, 5 possibilities, in terms of pricing one's house, and, when, and why, to use each one.
1. Above CMA, or Competitive Market Analysis - indicated range: The first thing to consider, and evaluate, is a professionally designed, fully developed, Competitive Market Analysis, or CMA. When done properly, this considers, properties sold, in the past few months, how similar they are to the subject property, how long, each was on the market, prior to being sold, etc. In certain market conditions, in specific geographic locations, pricing one's listing price, above the competition, might make sense, but only, if there is a clear understanding, if it doesn't sell, quickly, priced there, there will be a price adjustment. The risk of doing this, is, most houses get their best offers, in the first few weeks, and this might put - off, certain potential buyers. The other risk is, it might not, Comp - Out, or appraise at the price sold, and, potential buyers might be challenged, to get the mortgages needed. However, in certain market range, especially luxury homes, this strategy, might potentially, garner the highest prices/ offers.
2. Upper - end, of the range: A properly developed analysis, should indicate a price range, rather than determining an exact price. When the market is a seller's market, this strategy, for certain properties, might get the best. possible price!
3. Middle of the range: In most market conditions, pricing a property, in the middle of the range of competition, attracts the largest amount of quality, qualified, potential buyers. Rather than pricing, either too high, or too low, generally, this approach, balances getting a good number of views, with those, buyers, being qualified, and viable.
4. Lower - end of the range: Closely, objectively, examine, the competition, and know, if this house, lacks certain features, which might appeal, to buyers. If so, or if there is a need, to get the best possible offers, in the shortest period of time, pricing at the lower - end, of the range. might be the best strategy, and approach.
5. Below range: In my, over a decade, as a Real Estate Licensed Salesperson, in the State of New York, I have observed, and been involved, in situations, when pricing, on the lower end, made sense. If you seek to sell, a home, which is in decent condition, but most might want upgraded, and/ or updated, or, if there is a reason, to seek a pricing - war, this might be the best strategy, and approach.
There is no such thing, as only one way, to price a house, for sale. The better the homeowner and agent, proceed, as a team, and agree on which pricing strategy, to utilize, the better, the results!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonLongIslandHouses.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE
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