Ozaukee & Washington County Real Estate: November 2009

Find out more about Ozaukee and Washington County real estate, including the cities of Grafton, Belgium, Cedarburg, West Bend, Jackson and Germantown.

How NOT to Price Your Home

Excellent post. Clear. Concise. And to the point.

How not to price your home:

  1. Take your mortgage balance.
  2. Add your credit cards.
  3. Throw in your cars.
  4. Add a generous portion of all the money you borrowed from relatives. 
  5. Pile on your down payment for that other house you have your eye on.
  6. Last but not least, give yourself an extra 50 grand just for being you. 
  7. Get a blank look on your face when you are told that the buying public doesn't care what you owe. 
  8. Wait.
  9. Wait some more. 
  10. Decide you'll stay after all. 
Here's a better plan:
  1. Find out what homes like your have sold for in the past 90 days
  2. Price the house at that number or 5% less. 
  3. As my son's teacher says "you get what you get and you don't get upset."
  4. Pack your bags.
The buying public is utterly ambivalent about what you owe to whom as it relates to pricing your property. They only care about their own needs. What you need isn't on their radar, and if you aren't priced in line with the current perception of value, your listing will get stale and sit unsold for months as you chase the market. 

Chasing the market is always being one price point behind what the public is willing to pay. You enter the market at $599,000 when you really ought to be at $549,900. You lower to $575 when the market for the house is $525,000. By the time you hit $499,000, it could be a year later and the public isn't willing to pay more than $450,000. Each price drop seems harsh, but your real enemy was starting out too high. 

Sellers are in a war of attrition with buyers who lurk before they call, call before they look, and look at everything before they buy. You won't get a call, look or offer until your price conforms to what the public deems fair. The only offers overpriced homes get is low ball offers from bold types who wouldn't pay as much as fair minded people would on a fairly priced home. The only way to win the battle is to price as aggressively as possible and not allow your ego or personal preferences to cloud your objectivity. 
Easier said than done!

Tweet This

 

 

J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester Putnam MLS. Read my short sale bog here. J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City. 
Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

     Follow J. Philip Faranda on Twitter   Search the MLS Just Like an Agent!  40 Somethings Group on Active Rain

 

 

Peggy Wester
Phone: 262-370-1757
Email: pwester@realtyexecutives.com
Website: peggywester.com
Blog: peggysblog.com


Peggy Wester - Realty Executives Integrity

Comment balloon 1 commentPeggy Wester • November 28 2009 07:36PM
How NOT to Price Your Home
share
Excellent post. Clear. Concise. And to the point. How not to price your home: Take your mortgage balance. Add your credit cards. Throw in your cars. Add a generous portion of all the money you… more
Are you *Fun* to work with?
share
Some great, simple reminders for ALL of us. Be HAPPY! (Thanks, BethAnn! ) In the past 8 years I have been enjoying a steady and sucsessful real estate career. I have had all kinds of buyers and sellers, closers and lenders. I have worked with… more
Just Some Words of Inspiration for the Day
share
I found this on the counter at work the other day. It was simply typed on a plain sheet of paper; no author was noted. Just thought I'd pass it on. People are often unreasonable, irrational, and self-centered. Forgive them anyway. If… more