Gate Pricing is more important than ever.

When pricing your home the trend has been to start a little higher and see what happens because you can always lower it.  Well that philosophy can be flawed and actually will end up costing you more money in the end.  Here is why; most pre-approved buyers are working with agents who set up automatic searches for their clients so when a home is listed it is instantly emailed to the clients.  So it is safe to say that when you launch a property you are hitting a large portion of existing buyers currently looking.  Once that population of buyers is exhausted you will have to rely on new buyers that are starting to look or hope that you can lower the price enough to incentivize these buyers to put in offers.  So if you home is priced high and it sits on the market where you are forced to lower it, and lower it and 30, 60, 90 days pass, you will eventually get a lower offers than you would of anticipated. 

Now if you price you home just below market value you draw interest from all the current buyers that your home criteria meets because they will be advised that the price is worth a look, plus buyers are so much more astute that they will be drawn to it as well and may even inspire a multiply offer thus escalating the price even higher.  There is no guarantee that this pricing strategy will always work because every home posses different challenges however the majority of the time this is the pricing philosophy will hold true, price slightly below or at market value and you typically will end up with a better price at the end than pricing higher in the beginning, launch pricing is the key to getting it sold and keeping the integrity of the value intact.

 

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Personal Notes

  • Consulting with contractors
  • The Olympic Torch in Vancouver
  • My favorite pastime
  • Team USA at Vancouver!
  • Enjoying the local waterways
  • Vacationing in Russia