The Importance of Pricing Your Property

01 November 2018

For the past few years the list price strategy for most agents was to underprice a property. That did not take much skill, the further under market it was listed, the more it went over the list price. Any agent can do that. Today, potential buyers have grown tired of looking at unrealistic prices and competing with multiple buyers. How would you feel if you walked into a store and saw a Canali suit for $99. You might say “I’ll take two!” But, the store owner says, “Oh, we’re not selling at that price, we just wanted to see how much more you’re willing to pay for it.”

Today, if you price a property slightly under market, it will sell quickly, but only at full list price. And you will leave money on the table. If you list the property too high, hoping to get more money, it will probably just sit and you will end up with less. The most viewing appointments a property ever receives is in the first week. Price it too high, and you will get few or no appointments. Most properties sell in the first 30 days. When will be your first list price reduction?

The skill then, is pricing your property right at market value. Very few agents can do that. When you ask to see an agent’s sales record, don’t be impressed with the sale price way over the list price. Look for agents who have a track record of selling at the list price and within 30 days.