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The problem with the price-high-maybe-we'll-get-lucky
price scheme is that the amount of time to sell the
home can be several times longer than a home that was
priced right in the first place. The main reason for
this is the supply and demand of your home. Each home
has its own supply of buyers. Another way to look at
it is that the demand for your home is directly proportional
to how close you price it to its Fair Market Value.
You can effectively control the
demand for your home and how quickly it sells with the
right asking price. If you price the home at fair
market value you'll be attracted to 60% of the buyers
available for a home in your range. On the contrary,
if you price it above fair market value you'll reduce
the number of buyers for your home to 10% or less of
the pool of buyers for your home.
This figure illustrates that only market
value properties appeal to the largest group of buyers.
Overpricing your property shrinks the prospective
buyer pool by more than 50%. It further illustrates
that a property priced just 15% over the market value
appeals to none of the property pool.
So, is a high price more important
to you than selling your home quickly (or even in a
reasonable amount of time)? You'll have to be the judge
of that.
As we mentioned to you before, it is
absolutely imperative that you price your home at Fair
Market Value from the beginning of the listing. You'll
almost guarantee that you'll sell your home for the
highest price in the least amount of time.
What most home sellers don't know is
that often 80% of the effectiveness of marketing a home
is linked to where you price your home from the very
beginning. You set a precedent to an extent.
The true Fair Market Value of your
home is subjective and determined by what a Buyer is
willing to pay and you (the Seller) is willing to sell
for in today’s market conditions. That's the true
Fair Market Value of your home and it is based on the needs
and wants of both parties involved in the transaction.
With the Internet available to most
people, the buyers of today have all the information
that you have. They will base their offer by comparing
your property to others sold (or available) properties
in your area. They will evaluate your home against the
other’s, comparing the cost verses the value based
on their needs.
Tomorrow Lesson 7 - Redmond Sell Right Guide
Tomorrow you'll receive Lesson #7 of
the Redmond Sell Right Guide, which will reveal
the the top 9 places where buyers come from.
Don't
want to wait until tomorrow?
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