REALTORS: Your one-dollar pricing mistake just cost your sellers thousands | Real Estate, Updates, News & Tips!
Most agents continue to use the same pricing approaches that the industry did 50 years ago
- People searching for homes priced at $500,000 to $550,000 will never see your $499,999 listing.
The rules of pricing properties are changing, yet most agents continue to use the same pricing approaches that the industry did 50 years ago. Are you making this costly mistake on your listings?
A constant topic of conversation on my company’s group coaching calls is how to price properties correctly. A few days ago, I spent some time working with an agent who had landed a prime listing in one of the nation’s hottest downtown historical areas.
The listing was priced at $849,900, was beautifully staged and had only been on the market for seven days, which is the average market time for this area.
The other experienced agents had convinced the listing agent that she should ask the sellers for a price reduction because the property next door had just come on the market for $799,000.
The agent was also concerned that the area might be peaking and that additional interest rate increases could result in declining values.
After reviewing the comparable sales as well as the new predictive analytics tools for pricing listings, I recommended that she increase the list price rather than lower it. Here’s why.
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