Pricing Strategies

Aggressive Pricing - Strategic tool: When property is offered below market value, this pricing strategy can be a useful tool to encourage a fast sale and will generate the maximum market exposure to the property.

Speculative Pricing - High risk for seller: Overpricing originates from the belief that a seller can always come down in price.   While it appears to be a conservative decision, it actually fosters risk because:

  1. Brokerage activity (showings) decreases when a property is perceived as being priced out-of-the-market
  2. Exposure is greatly reduced buyers wont even look at a property if it is out of their price range
  3. It lowers the critical new inventory excitement level
  4. It will becomes stale inventory or shop-worn even after a price reduction
  5. The price cant be justified by an appraisal for financing even if an offer is made
  6. It lengthens market time, which often results in a lower selling price than would have otherwise been attained

Competitive Pricing - The Pricing of Choice: Allows room for negotiation without sacrificing exposure!

  1. Maximizes early weeks of peak interest and activity
  2. Attracts more potential buyers in acceptable price range
  3. More likely to attract higher offers
  4. More likely to attract multiple offers


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Information herein believed to be accurate but not warranted.




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