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THE CONSEQUENCE OF OVERPRICING
• The higher the price above realistic market value, the
fewer the buyers willing to consider your property.
• Pricing your property competitively will help attract the
most potential buyers for your property at the right price.
• Competitive pricing creates the energy your property needs
to attract multiple buyers and sell.
RISK OF OVERPRICING
Missing Peak Selling Activity
• Pricing your property competitively from the start will
generate the most activity among brokers and
buyers.
• A property generates the most interest among
brokers and buyers when it first goes on the market.
• The number of showings is greatest during this time,
if it is priced at a competitive market value.
• Starting too high and dropping the price later misses
the excitement and fails to generate as much
activity.
• It may even become necessary to drop the price
below market value to compete with new,
well-priced listings.
THE IMPORTANCE OF MARKET POSITIONING
Background
This graph depicts the traffic that will preview your home in the first 21 days on market.
Process
We will see the heaviest traffic when your home is first introduced to the marketplace and we have created a perception of value. These are our best potential buyers, because they are already working with our Realtors. They are educated, have seen all the inventory, may have lost other homes in multiple offer
situations, and are prepared to step up to the plate
and make an offer.
After the first week, traffic tapers off. These buyers
do not have the same sense of urgency that the first
wave of buyers had.
By the third week on the market, showings will have
dropped off dramatically. These are buyers who are
just entering the market, but are not yet ready to
make decisions. They are not necessarily educated
or experienced in the process.
Conclusion
The buyers visiting your home in the first days were
not attracted to your home by an advertisement.
These are the buyers who answered ads 60-90 days
ago in order to become today’s seasoned purchaser.
The buyers we see coming in after three weeks are
buyers who are new to the market and will not be
prepared to buy for another 60-90 days. Hence,
there is no immediate relationship between advertising
and selling your home. To capture those buyers
that are truely ready to make offers, you must
demonstrate you are truely ready to sell, by
competitively pricing your property.
WHAT IS THE MARKET DOING?
We can always tell whether the market is going up or down by measuring the volume of inventory coming on and going off the market.
If the inventory is going off the market faster than it is coming on, the prices go UP. (Seller's Market)
If the inventory is coming on the market faster than it is going off, then prices go DOWN. (Buyer's Market)
In an appreciating market, there is an abundance of energy and limited inventory. This pushes selling prices UP. Buyers are being funneled through the limited inventory, many wanting to purchase the same
property, and there is a sense of urgency.
However, in a depreciating market, there is an
abundance of inventory and no energy. Buyers
have their choice of inventory, knowing more is
coming on and there is no sense of urgency.
WHO DO YOU TRUST IN A CHANGING MARKET?
In the last hundred years, we’ve weathered two world wars, the great depression, double-digit interest rates, economic downturns, every natural disaster, from hurricanes and tornados to floods and earthquakes. Through all those years, in good times and bad, the one constant in the real estate industry has been Coldwell Banker.
For the success you expect, trust your transaction to Eddie La Rosa.
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