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Importance of a Good List Price

- A correct list price is probably the most important thing a homeowner and a salesperson can agree on to produce a sale.

- Picking a salesperson because he or she suggests the highest listing price is probably the worst thing you can do.

- Pick a salesperson because that person knows how to price a property correctly (and can justify it to you using market comparisons).

- Since no two houses are ever identical in terms of location, decoration, and timing (when offered for sale), then pricing becomes an important aspect, and indeed, almost an art!

- A house offered for sale generates the most interest in the first few days it is listed. Salespeople size it up. If there is good value, that is, the house is worth the asking price, then salespeople will keep track of it -- even if there are loads of listings available.

- Listing a house too high to start with and then reducing the price systematically every 30 days through list price reductions just doesn’t get the same results.

- Salespeople don’t spend as much time analyzing reductions as they do in looking at new listings.

- The longer a house is on the market, the more people think there is something fundamentally wrong with it -- even if there isn’t. It’s human nature. In many instances, a seller receives less money for his house than if he and/or she listed it properly from day one.

- Avoiding the extra anxiety that comes from taking months to sell a house that should only have taken a few weeks to sell because too high a list price was chosen.


Pricing Pyramid

Why do some homes sell right away and others seem to be on the market forever?

The properties that are on the market a long time and still unsold usually belong to sellers who are trying to sell a home, not a house. They try to get the purchaser to pay for all the emotions, hard work, improvements and cost of repairs that they have so enthusiastically put into their home.

They try to place a value on something that has no price. They let their emotions determine their asking price. This usually results in the asking price being so far over market nobody wants to buy it.

Successful sellers use common sense, not emotional sense. They realize they are selling a house, not a home, and price it accordingly.

The law of supply and demand determines value and demand is determined by buyers. Buyers buy houses.

They buy a house they get a good feeling for, but they also buy with their pocket book. They buy the house that best suits their needs and also appears to be the best buy compared to the other five to 12 houses they may look at.

They don’t pay for laughter, tears emotions or years of hard work. That’s why a lot of houses sell but a lot of homes don’t.