- Market Positioning: One of the biggest mistakes real estate brokers make when taking on a new listing is not gathering enough data or analyzing the data they have collected incorrectly when it comes to pricing a home or property. Positioning the home properly to the buying public is the first step in a successful real estate marketing campaign.
- Price the property too high and buyers simply will not make offers in fears of offending the seller. Furthermore, the buyers who would actually be buyers for the particular home will be priced out of contention and most likely will not even look at the home.
- Price the property too low and you have left money on the table. Nobody wants to sell his or her property for under market value and nobody should. The ultimate goal is to sell the property quickly and for full market value within the confines of the seller’s goals. Pricing a property too low generally does not meet the seller’s goals and is a mistake that happens all too often.
What do you do? It is of paramount importance the real estate broker hired to sell the home understands how to properly price a home to net full market value. Gone are the days where a few local comparable homes are looked at to arrive at the selling price for the subject property. A thorough, in depth analysis of 15-25 homes and recent market data and conditions are required to accurately arrive at the correct listing price. This process will likely take the broker 3-5 hours to complete but, pricing the property is too important to overlook and must be done correctly. Don’t let the next broker you hire give you a ten-minute opinion based on a few comparable homes of why your home should be priced where they say. They should provide you with a detailed analysis of why and how they arrived at the listing price. This explanation will take some time but, it will prove the broker has done their homework and truly knows how your home should be positioned in the marketplace to net you full market price in a reasonable amount of time. Don’t just trust a brokers opinion, make them show you the data to back it up.