Setting the Sales Price
Setting the price at which you will list your home for sale is perhaps the single most important decision you will make.
To help you make the right decision, as your consultants, we will ask you profound, insightful questions. You'll notice that these are the types of questions that the typical agent might not ever take the risk of asking you.
You may notice how quickly you can see that as your consultants, it is important that we lead you through the process of clarifying your values, because when your values are clear, your choices are easy, and you want to make god, easy choices, do you not?
You will notice, consulting is listening vigilantly to your answers. What you may not know, is that only when you have confirmed that we heard you, then and only then, will we craft a very specific strategic process to make sure you get the best price for your home.
7 Tips for Setting the Sales Price
1. Don't overprice your property.
According to a 2002 academic study of 3,490 California listings, homes without a price reduction sold for 97 percent of the initial list price, whereas homes with a price reduction sold for 88 percent of the initial list price.
2. Set your price to show up in Web searches.
A September 2007 Redfin study analyzed how online search filters affect traffic to a listing. Because real estate sites filter on price in $25,000 or $50,000 increments, listings priced at or below these thresholds — $250,000 rather than $251,000, or $325,000 rather than $326,000 — get as much as 7.1 percent more online visits.
3. Debut on Friday
. A December 2007 Redfin analysis of its online traffic for 119,079 listings across seven markets found that listings that debut on Friday get on average 7.7 percent more visitors in their first seven days than those that debut on the worst day, Thursday.
4. Engage with your consultant
. According to several academic studies, motivated, active sellers are able to sell their property as much as 30 percent faster.
5. Market the property online
. Promoting a listing on Web sites beyond the local Multiple Listing Service can drive a significant number of new online visits to a property. A December 2007 analysis of 121 Redfin listings found that promoting the listings on Craigslist resulted in an average of 6.8 online visits to the property for each Craigslist promotion.
6. Stay put.
The study of 3,490 California listings, cited earlier, found that vacant homes were 9.5 percent more likely to undergo a price reduction.
7. Wait to list your property until neighboring foreclosures are off the market
. According to a November 2007 report from the Center for Responsible Lending, a foreclosure costs neighboring home owners an average of $5,000 when listing their property.
These tips are a compilations of our experiences, as well as talking with and listening to buyers and sellers in today's market place, and research we compiled from various websites and articles.