Here’s my advice on how to hone your pricing strategy and get top dollar.
Whenever I talk to new agents, one of the first things they ask me about is pricing strategy. It’s a key part of being a great real estate agent, so today I want to discuss my pricing tips and how you can use them.
You should look at what a property would appraise for first. This is a great baseline to start from. Run a comparative market analysis (CMA) on other properties that have been selling in the area to find out the general price range. From there, look at what features separate the home you’re selling from others. If your square footage is less, it will probably sell for less. If your client’s home has special features, how will they affect the price? With this type of comparative analysis, you’ll soon have a good idea of where to begin.
The next thing to consider is market timing. In other words, how good is your local market? Just because a home generated a crazy bidding war a few weeks ago does not mean your client’s home will. If you pay attention to local trends, you should have a better idea of how to price a home.
You also need to think about your overall strategy. For example, if you have a home that you think could easily sell for $1.5 million, maybe you should list it at $1 million. This way, you catch more eyes on websites that cut off homes above $1 million. You could also use psychological pricing; in other words, listing a home at $999 thousand even though it’s worth a million. If you’re confident in what you can sell a home for, let buyers discover the same reasons you had for coming to a certain price.
Probably the most important thing I can tell you is to call every agent in your area with an under-contract property and ask them how it went. Their experiences are your best tool to figure out where your market is at. If something is working for them, it will probably work for you, so make sure you talk to a wide variety of local agents.
Hopefully, these tips will help you get your clients top dollar for their homes. If you have any questions about today’s topic, please reach out to me via phone or email. I am always willing to help.