Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less. It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully — or it will languish on the market. Among the considerations:

• How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. “I want buyers to ask why is this house priced so competitively,” said NAR President-elect Ron Phipps of Phipps Realty in Warwick, R.I. “I want the answer to be an offer.”

• Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

• Negotiate decisively. “Buyers are not interested in back-and-forth negotiations these days,” Phipps said. “They are less emotional and more disciplined. They will walk away.”

• Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it’s time to make a meaningful price cut.

Source: The Washington Post, Associated Press (09/18/2010)

As a seller you have to be realistic about the numbers, as well as understand that at any given time there are only a finite number of buyers in the market for a home exactly like the one you are selling. In order to consummate a sale it is your job to come up with a price that works for you, as well as meet buyer expectations.

What is your personal scenario? Gather the information you need and weigh the pros and cons. Once you have come up with a price that makes sense to you, organize your best marketing materials and if you prefer, hire a real estate professional to help you with the process. Never forget; everything else being equal, price versus value is what sells.

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The only way you are going to differentiate yourself in Scottsdale is to stand out with your Price versus Value, and declare, “Look, all these features for this competitive price!” Naturally, if your house was designed by Frank Lloyd Wright, or you are situated in a small town, the principle I’m talking about won’t be relevant; but in general, most of us are facing general market conditions. Read the rest of this entry »

Let’s talk about Value vs Price!

The time has come. You’re ready to sell your house and the big question is: what price tag should you give it? Let me explain the crucial point you need to grasp before taking your next step. Experience has shown that the foundation of any successful home sale is based on applying the Price versus Value principle. Everything else being equal, price in relation to value is what sells a house. Read the rest of this entry »