3 common listing-price mistakes you don’t want to make

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Older man holding a leather folder, standing in front of a for sale sign in front of a home

03/15/2016 | Author: Editorial Staff

A lot goes into coming up with the correct price for your listings, and the last thing you want to do is make a misstep that will undervalue the property or leave it on the market for too long. Candy Cooke, instructor for Pricing Strategies: Mastering the CMA, a class required for NAR’s Pricing Strategy Advisor certification, shares a few pricing pitfalls you can easily avoid:

Don’t be lazy with your research. If the school district is a selling point, don’t go outside of the school district for your comps.

Don’t pick the wrong comps. Choose properties that appeal to the same type of buyer you’re trying to attract.

Don’t just tell clients what they want to hear. Be willing to have the tough conversation, since it will save you both time and frustration in the long run.

Get even more tips of what to avoid, plus advice from Cooke on building your pricing strategy and clearing up clients’ misconceptions, in “Is your pricing strategy on target?” in the March 2016 issue of Texas REALTOR® magazine.

Categories: Business tips, Sellers
Tags: sellers, selling, listing price


Comments

Carleen Hardin on 03/15/2016

With our market in the Dallas-fort Worth area, we don’t have enough inventory, so houses sell quickly.  However, with that being said we do have listings that are on the market for 200+ days.  The sellers got greedy and so did the agent and they are now babysitting unhappy Sellers. 

For the listing that I have coming up in the $400-500K price, I did a “long form CMA” like the appraiser does and I used 6 properties from the last 6 months.  I also took the Sellers (both husband and wife) with me to preview all of the current listings in the neighborhood and drive by the “sold” properties.  They now know why some houses are still on the market after 4-5 months and they know their competition.  We are going to price the house together and they are not second guessing me that I priced it too low.  They also have a list of chores to get the house in market showing condition.

If the Sellers and agent work as a team the Selling process is easier for all parties.  Education of the market to Buyers and Sellers is part of our job.

Mark McNitt on 03/15/2016

Sellers will discuss what they see on other websites like Zillow.  Be prepared and understand those sites and how they work!  Using the Realtors Property Resources app/website from NAR in preparing a BMA can also help show Sellers comparable sales along with what happens if the home is over priced and what others Sellers in the area had to do when they where over priced and got a Buyer later (price reductions, negotiating more off of the list price, Buyers being more picky with the home regarding issues/repairs, etc).  Go into your meeting with information and the home will sell much faster at the proper listing price your recommending.


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