| Market
Value |
| By definition,
Market Value is the price at which a willing buyer
will buy and a willing seller will sell with the
property exposed to the market for a reasonable
period of time and neither party being under
abnormal pressure to buy or sell. Simply
stated, this means that if a buyer is
"anxious" to buy or the seller
"must" sell, then the actual selling price
maybe above or below Market Value. |
| Pricing
Philosophies |
That being said,
let's explore several "Pricing"
philosophies:
| Some
sellers set a high price, believing that
every buyer will make a low offer.
They feel that if they start high, they
can always reduce the price later on. |
|
| This sounds
"reasonable," but may not be...based on a
seller's specific needs, time frame for moving,
economic conditions and current market activity.
In a competitive marketplace, setting an asking
price above Market Value will definitely decrease
the number of potential buyers, and most likely
result in fewer offers and an extended time to
effect a sale.
|
| A second
"Pricing" philosophy is this: |
| Some
sellers ask a realistic price and
"remain firm." If a low
offer comes in, they stay close to the
asking price or don't counteroffer at all.
Those using this strategy believe that
asking a realistic price will create
greater activity, more prospects will look
at the property and if the price is right,
a "real" buyer will know the
value and pay the price. |
|
| This sounds
"reasonable," and typical is...except for
the assumption that "buyers will know the
value." In our ever-changing economy,
there can be vast, short-term market fluctuations,
making it difficult for buyers or sellers to
accurately establish a realistic asking price.
Pricing trends, local market conditions, the
national economy and overall business environment
all play a role in determining today's Market Value. |
| Working
Together |
| Harriet Nickolaus
will work with you to establish Market Value.
As indicated above, if the asking price of a
property exceeds Fair Market Value, the pool of
potential buyers decreases dramatically.
Pricing at/or below Market Value increases the
number of showings and qualified buyers viewing your
property. |
| By looking at the
properties Currently For Sale, we can see
alternative properties from which a serious buyer
has to choose...and can be certain that we are not
under-pricing or unrealistically over-pricing the
property. |
| While sellers
naturally want the most for their property, we can
agree that there's a point where the price would be
too high. By looking at homes that have
Expired or Failed to Sell, we can accurately
determine the price point and be careful not to
approach it. |
| By looking at
similar properties Recently Sold, we can see the
prices homeowners have actually received. This
is the acid test, subject to market fluctuations
that may have occurred since the past sales were
recorded. |
| In other words,
by doing our homework diligently, together we can
achieve our primary goal...to obtain the best
possible price in the most reasonable period of
time. |
