Janis Peterson, GRI, ABR, CSP Realtor®
Philadelphia Main Line Homes and Real Estate
Montgomery, Delaware, and Chester Counties
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Subject:
Pricing a Fine Home Presents a Range of Options
Everyday we hear stories of fabulous homes being sold for unprecedented prices. The temptation for sellers to overprice a fine home can cause disappointment, even in a seller's market. Pricing dramatically impacts the results you will receive in marketing a distinguished home. Establishing the right value for a luxury property in the current market conditions we are experiencing requires careful consideration of a range of options.
Inflated prices.
The likelihood of receiving acceptable offers increases dramatically when you start with a fair asking price. Homes receive the most attention when they first go on the market. Sellers who test the waters with inflated prices run the risk of turning away qualified buyers. Lowering the price months later may not work as buyers begin to question the marketability of the home in light of its long history on the market. Bargain hunters making offers on a property that has been on the market a long time often feel justified making an offer much lower than the asking price.
Owners of fine homes should be especially careful to work with real estate professionals accustomed to pricing strategies in the upper-tier market. A comparative market analysis will assist you in selecting a listing price. The best qualified real estate professional is one who understands your market thoroughly.
Aggressive prices.
It is true that aggressive pricing can be an effective strategy to maximize the number of offers and generate interest. Unfortunately, a large number of offers does not always mean you will receive offers for much more than the asking price. And there is not much point in generating interest from buyers who are under-qualified to offer the amount you truly seek. An overly aggressive price can mean lost value in the transaction. Inexperienced real estate professionals can make the "rookie mistake" of encouraging sellers to list their upscale properties at prices below fair market value in the hope that competing offers will bid the price back to within an acceptable range.
Marketing within a range of prices.
One option of particular appeal to both buyers and sellers of premier properties is the marketing of a property within a specified price range. With Prudential Value Range MarketingSM (PVRMSM), for example, your home is listed at a fixed price but marketed within a price range. By advertising a price range, you have the advantage of generating interest as well as encouraging a variety of offers - but only offers within the specified range. While not all properties may be appropriate for this pricing strategy, many are. In fact, this approach usually cuts the number of days a property is on the market dramatically and very often leads to higher selling prices than the seller has anticipated.
Marketing a Fine Home.
Regardless of how you price the home, where you advertise it and how you market the home and its price has a big impact. In addition to local advertising, you should look for a real estate firm that can drive interest from across the country and even internationally. Many wealthy overseas investors are eager to purchase fine homes in North America when they relocate.
And while the price of an upper-tier property is a central part of the strategy, the distinctiveness of the home may never be noticed if it is marketed haphazardly or in an undignified manner. A qualified fine homes specialist will have special tools available to market a luxury property in the most appealing fashion. Some leading real estate franchises make group buys in major U.S. daily newspapers, for example, in order to generate interest from qualified fine homes buyers around the world.
The pricing strategy ultimately selected will play a key role in the satisfactory marketing of a fine home. Working with your qualified real estate professional, you should be able to find a listing price that proves most effective for you.
"Real Service in Real Estate." For a personal consultation on buying or selling real estate, Janis Peterson, GRI, ABR, CSP Realtor® can be reached at (610) 642-3744, e-mail: jp4re@pahomes.com. Prudential Fox & Roach Realtors® is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc.
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