Page 76 - Selling secrets 5 18 2023

CHAPTER 7

How to Set the Price

You’ve almost certainly heard that Location! Location!
Location! is the most crucial consideration in commercial
real estate and a major factor, if not the predominant one,
in commercial real estate pricing. Likewise, novice (and not-
so-novice) home sellers must know the considerations—
such as location—that determine a home’s price.
Throughout this book, you will read examples of
similar and similarly situated houses that sold for very
different prices, along with the reasons for the disparities.

LISTING PRICE SETTING

Setting a listing price is a strategic exercise that aligns the
seller’s goals to the selling approach. If the seller is in a
situation in which the house must be sold quickly, that calls
for a price that will move the home quickly. However, it may
forfeit selling for the most money. Where the house is an
inherited property and not in the best of condition, but is in
a great location, that takes another kind of pricing strategy,
and might involve repairs and staging to get the best price.

As you can see, plenty of factors go into setting a listing
price. Therefore, it’s critical for home sellers to know the
considerations that determine a home’ price. There is both
an art and a science in setting a listing price. Setting the
price at which to sell your home is not a formula, nor is it
simply mathematical. Factors include location (even on the
same street), condition, features, and unique amenities.

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