FBSO Pricing | Sellers Resources

Pricing

Price a home too high and it will stay on the market a long time that can actually result in a lower price than had it been set properly in the beginning. Price a home too low and part of the sellers equity is not realized that could help the owner when buying another home.

The amount of money that a seller needs to get out of a home is not an accurate reflection of the value.

Obstacles to Proper Pricing:

Incompetent agents who will accept a listing at any price
Neighbors who mislead the seller as to how much they got for their home
Fear of making a mistake
Loss of perspective because the seller is emotionally involved
Need to realize a certain amount of cash out of the sale.

Overpricing:

Reduces sales associates activity
Reduces marketing response
Loses interested buyers.
Attracts the wrong prospects
Eliminates offers
Helps sell the competition
Extends the market time.

Dont Get Caught Saying:

Another agent said it was worth more
Our home is nicer than those houses
People always offer less than asking
We can always come down on price
We have to get that much out of it
We paid more than that for our home.

Things that Dont Affect Value

What you paid for the home
The cost to rebuild it today
Your investment in the improvements
Certain types of improvements.

REMEMBER: The Seller sets the price of the home but the Buyer determines the value.

I can follow up on prospects that have seen your home without them thinking you're anxious. A homeowner calling a person who has seen their home can give the wrong impression that may lead them to think you are desperate. The problem with a homeowner calling a prospective buyer "to see what he thinks" is that the buyer might get the wrong impression. You don't want to appear as though you'll take less money. This could lead to lower cash proceeds for you.

To the contrary, it is natural for a third party like the listing agent to follow up with a prospect. It is the responsibility of the agent to find out what kind of reaction the buyer had to the property. This will help encourage a contract and can lead to learning about adjustments that can be made to make the home more marketable.

Negotiation

Many homeowners who have tried to sell their own home have felt like negotiatingwith potential buyers is one of the most difficult areas encountered. Without having a third party to buffer the comments between the buyer and seller, an inordinate amount of pressure can be placed on the seller to lower the price or offer other concessions.

Real estate professionals have training and experience in recognizing conscious or unconscious games that buyers play to improve their position in the purchase. Sometimes the negotiation can actually become adversarial positions can actuallydevelop and the agent becomes the adversary for the seller.