Monday, November 24, 2008

Pricing Houses is Like Buying a Used Car

Here's a little piece of advice I give to sellers who are struggling to really hear and internalize the pricing advice I've given them. (Because in today's market, it never fails that my advised listing price is less than the sellers hoped for.)


Think about buying a new car. Or a used car. Whatever. You go online, you do your research. You know that the car you really want to buy should cost about $30,000. Or whatever, use any number you like; I'm using $30k because it's nice and round and easy and complicated math isn't my bag.


So you've budgeted $30,000 for your new car. You've found out - online - that there are 2 dealerships nearby offering the exact car you want. One has listed the car at $35,000. The second dealer listed the same car at $50,000. Being the Age of Internet, you can see all this online, easily, without leaving your Barcalounger or changing out of your favorite plushy jammies.


Which dealer are you going to visit? No kidding Sherlock. You're going to the dealer who's offering the product at a mere $5,000 above the market value. You'll make him an offer at $25,000, he'll come back at $29,000 and you'll ink the deal.


The hapless, helpless dealer who advertised his $30,000 product at $50,000? He doesn't even get a look-see.


This is how it is when you're pricing your home for sale. Don't just "try it". Don't just "wait and see". Price it right, from Day One, and you will see the rewards. You'll be one of the 6% of homesellers who actually sell their homes in Metro Phoenix this year. Insist on overpricing? You might as well spend big bucks on one of those TV ads with the deep booming annoucer voice bellowing "Last Chance!" and "Won't Last Long!" (because it will last long. And long is painful.)


Related Posts: