THE LEADER IN CUSTOMIZED REAL ESTATE SM
ABOUT RLAH REAL ESTATE When it comes to residential real estate in the greater Washington, D.C., area, buyers and sellers may perceive a range of choices among those professionals seemingly at the ready to serve them. The very experienced and dynamic individuals of Real Living | At Home, however, make the choice obvious. RLAH embodies a community dedicated to integrity and service, and to evolving to meet the ever-changing challenges of a market on the move. From pied-à-terre to palace, from Dupont to Damascus, RLAH’s seasoned and savvy experts offer unsurpassed dedication to clients. You will know us by our reputation. You will love us for our deeds.
REAL LIVING. REAL ANSWERS.SM
BEFORE YOU SELECT THE RIGHT PRICE FOR YOUR HOME, SELECT THE BEST PRICING STRATEGY
PRICING YOUR HOME Visit open houses in a relative price range. Ask an RLAH Real Estate agent to provide you with this information. By visiting these properties, it will enable you to have a broader pricing perspective. Thus, when you’re discussing pricing strategy options with your real estate agent, you will both be on the same page.
Access recently-sold data of properties by visiting Realtor.com or other popular real estate websites. Drive by homes which have sold and assess their appeal compared to your property. Remember the exterior is only the part of equation.
Before selecting a price to market your home, first determine the best pricing strategy. Homes and even more so lifestyles are not commodities, and therefore, should not be marketed or priced as interchangeable widgets. Due to this distinction, Real Living is a proponent of a customized pricing strategy to tailor a plan based on your best interests.
HOME PRICING HISTORICAL PRESEPECTIVE For decades, thousands of homesellers have painfully watched thier home languish on the market for a much longer period than they hoped, due to overpricing their property. To the contrary, some homesellers have agreed to a sales price lower than they should have accepted due to underpricing their home. This is because the pricing of real estate is not a science—and thanks to all you do to decorate, maintain, improve and stage your home—it never will be a science.
QUESTIONS TO ASK YOUR REAL LIVING NETWORK AGENT
Although you can learn of the sales price, what is not always known is the motivation and circumstances of both the seller and buyer of each property that has sold.
A key factor is determined by what your motivation and desired time frame is for moving and selling.
RLAH RECOMMENDED PRICING STRATEGY WHY PRICING IS NOT A SCIENCE Real estate professionals admit when they ask fellow agents and appraisers to suggest a price for a property they intend on marketing, they will receive numerous and significantly varied pricing recommendations. Even more remarkable is how many real estate professionals tend to overprice their own property. This highly selective approach to pricing runs contrary to the fact that real estate professionals have access to all data and can preview competing properties which, too often, are considered comparative. The problem with a data-driven approach is oftentimes competing properties and comparative properties are conflated as one and the same, which they are not, rendering a disservice to the marketing of many homes. Homeowners need to ensure the real estate professionals they meet with, provides SM Real Living. Real Answers. and does not confuse the difference between how properties compete with one another versus how they compare.
+ What current market data will buyers be evaluating when they assess my property’s value? + How pricing is trending?
RLAH Real Estate agents should acknowledge that no two properties are alike and all homesellers’ circumstances are different. The following three pricing strategies should be shared, as well as displaying all relevant home data that pertains to your property to ensure the best pricing strategy is selected.
MARKET ANALYSIS STRATEGY 1 Select a price as close as possible based upon what the data and information compiled through a market analysis or appraisal would suggest. Benefit Property typically will be more likely to appraise out and appeal to a broader range of buyers and will especially attract the more knowledgeable buyers and buyer agents.
LESS IS MORE PRICING STRATEGY 2 Select a price nominally lower than the data suggests, in order to create more intense and immediate attention from serious buyers. Benefit Can create more competition and lead to multiple offers.
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RETAIL PRICING STRATEGY
Include a “reasonable” negotiating cushion. Just as many retailers will first increase a price and then lower it to gratify the buyer, so too will many homesellers, anticipating that buyers will offer less, therefore price their property higher than market value to begin with. They specifically add a negotiating cushion to their asking price with a willingness to “grudgingly” come down off their price.
Benefit Since most buyers will offer less than the asking price— more as a negotiating strategy, than even their perception of value—this pricing strategy can create the sense in buyers that they got a good deal.
+ Which homes have sold within the last six months?
+ What can be done to increase my home’s value?
+ How long are homes in my price range taking to sell?
+ How will you help negotiate the best price?
+ Which homes were removed from the market?
+ Why did certain homes not sell?
+ What is the overall absoption rate in the community?
+ How will you target the right buyers for my home?