Appropriate Pricing

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Whether you’re a Buyer or a Seller, price point is likely to be very close to the top of your criteria. This is why when deciding to price your home, it’s important to be accurately priced according to your surroundings. An experienced Realtor should provide you with a Comprehensive Market Analysis. A CMA is a report that will show the pricing at which the homes around yours (with similar size and amenities) have sold for. This will help give you a price range within which to stay.

Everyone Wants a Deal

            Every Buyer is looking for a deal. Many believe significantly over-pricing a listing will leave wiggle-room for negotiations. WRONG. This can potentially give yourself less leads & showings rather than more; for example, with online searches, pricing criteria may put you in a higher pricing bracket. If you’re priced in a higher bracket, it may exclude you from leads in your appropriate price range. A buyer may never even see the listing unless they decide to spend more money, which is unlikely. When you do get showings, the buyers may have higher expectations, expecting this home to have a stand out feature that makes it worth the extra money. If they cannot find value in the home, they may leave feeling like the home isn’t a good deal and may not want to transact with someone who doesn’t have appropriate expectations. This will likely make them move on to the more “correctly” priced homes in the area.

Stale Listing

            You may say to yourself,  “well we can always lower the price…” and yes you can.  The problem here is the home has now been on the market for a considerable amount of time; it’s no longer a new, hot deal. After about 90 days your listing gets lost in the hundreds of listings popping up in the MLS. Buyers will generally question a home that has been on the market for even as little as 90 days. A Buyer may ask themselves, “why hasn’t this sold?” A stale listing will leave the Seller and the Realtor feeling frustrated and sometimes may cause unnecessary friction.

Arm Yourself

            What should you do?  Make sure that you are looking at the homes around you and creating a fair estimate of its worth based on recent sales. Still not satisfied? If you really think your home is worth more than those around you, it may be worth investing in a professional appraisal before listing your home. An appraisal may cost anywhere from $300-$500 but  this may also save time when your home goes under contract. A professional appraisal will give you a better idea as to the amount the home is worth.

**Happy Hunting!  Don’t forget an Allen Group Agent can assist you today. We can provide a free CMA for your home. Chris Allen is also experienced in appraising and can meet with you to valuate your home. Just call now 405-509-9350  or email thallengroup@sellingoklahoma.com

-Source:http://www.realestatetidbits.com/my_weblog/2013/02/real-estate-myth-understanding-pricing-a-home-high-gives-the-seller-room-to-negotiate.html

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