Home Sales Pricing Strategy
Developing an effective pricing strategy for your home in Dallas metro market is the most important step to insuring that your home sells for the highest price possible, in a reasonable amount of time.
Having a home market report prepared by an experienced agent who holds Accredited Luxury Home Specialist(ALHS) and Certified Home Marketing Specialist (CHMS) designations is the best way to insure your home will be competitively priced in today’s real estate market.
MARKET ANALYSIS EXPLANATION
The correct selling price of a home is the highest price that the market will bear. The market approach is based on the premise that a prudent, informed person will pay no more for a home than it would cost to purchase a comparable substitute.
To determine the correct asking price, we will provide you a comprehensive market analysis of comparable properties that have been recently offered for sale in your community. This analysis is based strictly on homes that can be considered similar to yours, and has been especially prepared for your property.
This market analysis is divided into three categories:
- Similar properties that are currently listed (the competition).
- Similar properties that are currently pending.
- Similar properties that have recently sold.
By carefully studying the comparable property locations, features and terms under which they were offered, we can develop a clear picture of the potential market for your property.
By looking at the properties currently listed, we can see exactly what alternatives a serious buyer has to choose from. We can be certain we are not under pricing the property.
By looking at similar properties recently sold, we can see what homeowners have actually received over the last few months. This is the acid test used by lending institutions to determine how much they will be willing to lend a buyer for your home.
By looking a pending property, the most recent sales, we can look for possible pricing trends either upward or downward.
While we naturally want you to receive top market value for your home, we can agree that there’s a point where the pricing would be too high. By carefully studying the sales record we can determine a price point that will both attract the buyers and get you the maximum possible price in a reasonable amount of time.
AN OPINION OF VALUE IS BASED ON:
- Condition of property
- Size of home
- Lot Size
- Amenities of the home
- Buyer demand
- Seller Motivation
- Economic trends
- Financing availability
- Interest rates
- Prices of similar properties
- Recent sales of similar homes
- Recent pending sales.
- Market appreciation/depreciation.
It will take coordinated teamwork between you and your real estate broker to sell your home.
Here are the roles of the team members:
Selling your home for the highest possible price in the least amount of time requires teamwork.
Your team consists of your real estate office with its other sales associates and management, your individual listing associate, and yourselves.
Coordinated efforts by all of the parties are necessary to bring about a sale of your property.
The factors that you as the seller control are:
- The asking price of the property.
- The terms of the sale.
- The physical condition of the property.
- Preparing the property for showing.
- Making the home available for showing.
The factors that your agent and the real estate company controls:
- Advertising the property.
- Preparing a marketing plan and marketing materials.
- Placing your home on the internet.
- National connections that provide buyer relocation leads.
- An outstanding past performance record.
- The personal referral networks of our experienced top producing agents.
- Making the property available to other agents through M.L.S.
- Advice in negotiating offers to purchase.
- These are the factors outside of your broker’s control as well as yours.
- Current market conditions caused by local or national economic trends.
- Interest rates and the availability of financing.
- Other competing properties.
- With a concerted team effort we will sell your home for the best price in the least amount of time possible.
The Danger of Overpricing
New listings generate a lot of excitement. Real estate agents and potential buyers are both searching for what is new and exciting on the market. Your home will generate the most activity when it first debuts. This is why it is very important that your home is priced right and shows great the day you open the door to potential buyers.
As the graphic above indicates, the best offers often come when a property is newly listed—if priced to high, it’s difficult to generate the momentum needed to bring about a sale. If agents and buyers are turned off by too high an asking price or poor condition they probably won’t take the time to take a second look when you finally reduce the price or make needed repairs.