Todd's Blog

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.

 

You have to show it to sell it

Western NY has one of the strongest real estate markets among the country’s declining areas. In WNY there are many choices when you buy real estate. One of the biggest reasons why a property does not sell besides price is accessibility.  Yes it is hard to believe that there are sellers that want to sell their property but won’t show it! Getting in to show these properties takes an act of congress.  If you are one of these sellers you need to know this; you will be inconvenienced, you will have to bend your day to day routine a little, and you will have to keep your home clean and hopefully debris free.  This is Real Estate 101. It would be like trying to sell a car that never gets test driven.  Accessibility is one of the most overlooked keys to selling real estate. You have to allow potential buyers in whenever you can.  You will have a better chance of not only getting an offer but the ability to gain important feedback from other agents and their clients that could affect the marketability and sale of the property going forward.

If you are selling a multifamily home then you have some work cut out for you dealing with showings and tenants can be a challenge.  If the owner has the opportunity to look into the future when a lease is signed they should put a clause in the lease stating that in the event the owner chooses to sell and market the property landlord or agent will give 24 hour tenant notification of showing and acceptance will be assumed granted.  The terminology may vary and tenants have the right to object during certain circumstances(consult your attorney) however the point being that the biggest mistake a seller can make is letting the tenants dictate showing, because guess what they never will allow any. You need to ask yourself if keeping the tenant is worth losing the sale!  When investors look at income producing properties they look at a several properties at a time and if they cannot gain access to one of them, they skip it and move on.

If you have a true desire to sell your property then be prepared to be inconvenienced but it will be worth it in the end.

 

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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