Page 87 - Selling secrets 5 18 2023

think you can set a higher price, but buyers already expect
the roof to be in excellent shape. Proximities to schools, bus
routes, and medical facilities can also create value that
certain buyers are willing to pay for. Buyers look for the
right deal, but what they are willing to pay, or the bank is
willing to finance, has limits. Strategic pricing is your
greatest tool when selling your home.

PRICING EXAMPLE

A home owner decides to place her home on the market
and must decide on an asking price. By rough estimate, the
home’s market value falls between $290,000 and $300,000.
Many homes are on the market. These are some pricing
considerations and approaches to finding that “right price”:

« The “leave room for negotiation” approach. In this
approach, the market value is “stretched,” say to
$305,000. The price will not entice a buyer but might
make comparable homes more desirable. The home
will most likely not sell quickly or at that price.

« The “price it according to worth” approach. This
approach sees the price set right between the market
value benchmarks, at $295,000. Likely, home shoppers will
lump the home with like-priced homes, knowing they can
buy any time for $295,000.

« The “underpricing generates interest” approach.
Underpricing at $280,000 will motivate buyers and
perhaps create a bidding war. But the goal of selling
the home for more money is derailed.

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