Neighborhood of Caribe
If you are a property owner who is not in any particular rush to sell your property, read no further. This is not meant for you. Skip down to the last paragraph of this blog.But if you’re one of the many owners out there who want – even need – to sell their property quickly, the best word of advice we can give you is: price your property right.What do we mean by “right?”Working with your La Florida Realtor®, do your homework. Research what comparable and competing properties are selling for; not what they are listed for. Buyers speak to us through the marketplace, even if we sometimes don’t want to hear what they say. To sell your property, it must be priced in alignment with the value that buyers believe it offers.We’re not advocating so-called fire sale pricing, but buyers today know they can pick and choose. Time and again, sellers who have priced their property based on market prices two years ago have watched cobwebs grow on their for sale signs. The strategy of pricing high so that you have room to negotiate downward absolutely does not work in this market. With possibly hundreds of properties on offer, the first thing most buyers check is that the price is fair and reasonable by the measure of today’s marketplace. Once a buyer sees that your price is in alignment with the market, the features and benefits of your property will sell it.It’s not that all the other tools to sell your property – renovations, bonuses, staging, advertising – won’t work. It’s just that in this market, buyers are price-conscious first.Keep in mind this buyer mindset does not mean that they will consistently buy the cheapest property on the market. Notorious bottom-feeders and desperation-sale hunters aside, most buyers understand that the lowest priced property may not be the best for their needs. Still, nothing puts a buyer off more than a history of dropping the price on your property over a lengthy period. Get the price right the first time, and you give yourself an edge over those reluctant to get right with the market.If you’re one of those in a position to sit back and wait a bit, ask your La Florida Realtor about our new “If The Price Is Right” program. It offers specialized marketing and promotions for people who are prepared to sell if a buyer makes them a compelling offer.
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on Thursday, October 11th, 2007 at 4:32 pm and is filed under Selling Real Estate.
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October 23rd, 2007 at 4:28 pm
Huzzah for the Invisible Hand!
October 24th, 2007 at 4:20 pm
Adam Smith aside, pricing is not the only factor–consumer confidence is extremely important and as the NAR Senior Economist for the National Association of Realtor (NAR) Lawrence Yun, states that when “Consumer Confidence Improves, Home Sales Will Rise.” The negative press is not helping but we are starting to see a less negative trend and some positive press—The September Time Magazine article referenced in the Emerald Coast real estate: Three reasons to be upbeat post, talks about prices eventually increasing and that by not acting soon that there is risk of being priced out of the second home market.
The type of property is extremely important and many people are comparing the proverbial “apple to oranges.” Price per square foot comparison is one way people try value a property, however, many are missing other important factors, location (beach front, view, gated community, etc.), construction, amenities, finishes, and “is this where you and your family want to spend their time together”—to name a few.
Some shoppers’ (I have a hard time calling them buyers) expectations are sometimes unreasonable–tainted by the extreme negative press. They are surprised that their “low ball” offers are not accepted—and not even countered.