By Richard Brody
After more than a decade, as a Licensed Real Estate Salesperson, in the State of New York, I have witnessed nearly every scenario, behavior, etc. However, perhaps the most important, as it relates to homeowners, desiring to sell their homes, is determining the listing price, and understanding the reasoning and reasons, behind a variety of listing price/ pricing strategies. However, before we proceed with this discussion, let's discuss one of the biggest stumbling blocks, which many homeowners, impose on themselves. It's amazing how many times I've heard a homeowner explain why they wish to price their house higher than what the competitive analysis of the market, might indicate to be the wise course. This explanation is often, they want to use a higher listing price, so they will get a better price for the house. If, only it was so easy!
1. Listing Options: One may opt for one of three options, when deciding and setting the listing price. These each have pluses, as well as minuses.
a) High end: Some believe they will set their listing price on the higher end, hoping to get a higher price, and, on some rare occasions, that might actually work out! However, often this has a negative impact, either reducing the number of potential buyers who will view the house; scaring away qualified buyers; reducing the number of offers; and/ or losing valuable time. Statistics show that in the vast majority of cases, one will receive the best offers, in the first few weeks after it's listed, so when a house remains unsold, and on the market, there is often the perception, there must be something wrong with the house!
b) Lower end: The advantages are getting the house to appear in more computer searches, and thus, hopefully, attracting more possible, potential, qualified buyers. The risk, however, is one might not get the best price, unless there is so much activity, a bidding war comes to fruition.
c) Middle: Placing a listing at, or just slightly below, what the CMA's indicate, often ends up, being the best of all worlds! There becomes a price/ number of viewers balance, it remains attractive, and should still receive the necessary amount of qualified attention.
2) Selling Price factors: One must recognize, neither the owner or agent determine the selling price, but only the combination of market conditions, qualified buyers who view the property, and the right one, who puts in an acceptable offer, is what truly counts! Let's briefly review four factors which might affect this price.
a) Market conditions: Is there a Buyers or Sellers Market? Are mortgage interest rates favorable, for purchasers? How about the location, area, safety, and other factors?
b) Competition: How does the house compare to other houses presently on the market, also known as, the competition? Is the house, priced properly, to sell?
c) Buyers or Sellers Market: When there are more houses available than buyers interested, it's a Buyers Market. When there are more interested buyers, than houses listed, it's a Sellers Market. Obviously, there is a better chance of getting a higher selling price/ offer, in a Sellers Market.
d) The ultimate buyer: In the final analysis, what counts most is the ultimate buyer. If you find someone who falls in love with your house, or its location, or it fits an essential need, or emotional component, you will get a quality offer!
If you are selling your home, don't believe simply because you opt for a higher Listing Price, you will get a higher Selling Price! It often does not happen that way!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonRealEstateOffice.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE
Article Source: http://EzineArticles.com/?Homeowners-Beware:-Listing-And-Selling-Price-Are-Not-The-Same&id=9691578] Homeowners Beware: Listing And Selling Price Are Not The Same