Importance of Pricing

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Importance of Pricing

Understanding Market Value

Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale. The existing pool of prospective buyers determines a property's value, based on:

  • Location, design, amenities and condition.
  • Availability of comparable (competing) properties.
  • Economic conditions that affect real property transactions
  • Factors that have little or no influence on the market value of a house include:
    • The price the seller originally paid for the property.
    • The seller's expected net proceeds.
    • The amount spent on improvements.
  • The impact of accurate pricing:
    • Properties priced within market range generate more showings and offers, and sell in a shorter period of time.
    • Properties priced too high have a difficult time selling.
  • Determining A Market-Sensitive Price
    • An impartial evaluation of market activity is the most effective way to estimate a property's potential selling price. A Comparative Market Analysis considers similar properties that: 
    • Have sold in the recent past - This shows us what buyers in this market have actually paid for properties similar to yours.
    • Are currently on the market - These are properties that will be competing with yours for the attention of available buyers.
    • Failed to sell - Understanding why these properties did not sell can help avoid disappointment in the marketing of your property
  • The Dangers of Over-Pricing

    An asking price that is beyond market range can adversely affect the marketing of a property.

    • Fewer buyers are attracted, and fewer offers received.
    • Marketing time is prolonged, and initial marketing momentum is lost.
    • The property attracts "lookers" and helps competing houses look better by comparison.
    • If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.  The property may eventually sell below market value.
  • Value Range Marketing
    • Value Range Marketing (VRM) can give your property an advantage over other houses on the market. With Value Range Marketing, your property is listed at a fixed price, but marketed within a price range. This unique marketing approach can attract a wide array of buyers and encourage more buyers to preview the property and submit offers. Benefits for Sellers:

      • Increased marketing exposure for your property
      • Eliminates the need for price reductions
      • Accelerates the sales process allowing true market forces to determine maximum price.
      • Attracts more buyers

      Benefits for Buyers:

      • Introduces a larger selection of properties to view
      • Eliminates intimidation by a fixed price tag
      • Allows searching within affordable price ranges
      • Allows the negotiation process to be more comfortable.
  • Value Range Marketing - Finally, A Better Pricing System For Today's Real Estate Markets 
    • Value Range Marketing  (VRM) is a marketing system that broadens the range of buyers available to view your property. VRM prices are the result of years of ongoing, sophisticated market research, making the VRM system much more than simply "picking a price range."

      VRM is perfectly suited for today's market.

      86% percent of all buyers begin their search for a home on the Internet; with buyers selecting a range of prices to search. Most buyers are pre-qualified and know their "range of affordability" - or how much they can afford to spend. Properties marketed using VRM will show up in many more "range of affordability" searches, exposing your property to more prospective buyers.

      VRM vs. Traditional "Fixed" Pricing.

      Marketing within a proven, researched price range rather than a "fixed" price connects buyers to a wider spectrum of homes improving their chances of finding your property. For you, this means more offers, which helps to sell your property faster and still meet financial goals. VRM sets comfortable boundaries for agreeing on a price. Buyers start the negotiation process much sooner. Sellers attract more offers and have a better chance of getting what they want. Experience proves that high fixed prices discourage buyers from looking at homes they might be able to afford. Which is why VRM may be the fastest way to sell your home.

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