Pricing – How Homeowners Estimate Their Homes Value

The Truth Behind Sellers Pricing Their Home (Truth or Reality)

Did you know that the majority of sellers, waste time, effort and stress just to get less for their home?

That's right. They spend time, effort and stress sabotaging their sale to get LESS money in their pocket.

They invest their efforts and their agent’s efforts at the wrong time, in the wrong spots, trying to control the process, and they waste their most critical marketing time.

This 11-part series will walk you through the high points on the most critical aspect of your marketing (The PRICE). And we’re going to share with you why the right price, combined with the right marketing is crucial. And along the way we will reveal a secret that will have you rethinking everything you thought you knew about pricing your home.

Getting the most money is not rocket science but it tends to be a bit counterintuitive

It’s part of a bigger picture – and this whole thing has to make sense, the whole process.

You have Many personal considerations to think about — from financial (buy and sell), the timing of multiple transactions, the work involved with both buying and selling, stress, other family members, and ultimately your next move!

Step 1 – How much is the home worth in today’s market (Fair Market Value)

If I asked you right now… What is your home worth today?

According to a REFINANCING study by a major lender, & study by Homegain and Princeton Cap:

• Generally speaking there is a 30% chance your “bang on”
• 2% chance you have underestimated the value of your home
• But, like the majority of homeowners….. there’s a 68% - 76% chance you have overestimated the value

I often hear…. Ours is a great house, it will sell and fast (its great, but only at a great price… otherwise it’s a fair product offered for a fair price)

You see… The Ask/List Price serves 2 critical functions pertaining to Buyers and their search

1. Buyers and their agents FILTER OUT inappropriate properties by price, (this is second only to location)
2. The price either invites, or doesn’t invite an offer or offers depending on the pricing strategy. And the often heard, “They can always make us an offer regardless of price", just doesn’t work.

And this is why, in a typical given market here in Calgary, nearly 50% of listings don’t sell on their first attempt. They expire, or are terminated out of frustration.

With the proper pricing strategy, you can enjoy the following benefits, which all work together cohesively.

• FMV (Fair Market Value)  but is your price actually realistic FMV
• Faster sale – and benefits of (financial, work, stress)
• Less inconvenience
• Motivated buyers
  • Realistic buyer agent influencing
• Better online response
• Better in person response
  • Both quality and quantity
• Avoid having a shopworn/stale listing
• Higher offers
  • Maybe even multiple offers

Coming Up Next ...

In the upcoming videos, we're going to discuss:

• The Pricing Matrix and how the 4 different price segments affect each other.
• The factors affecting the Fair Market Value range
• An old realtor trick called "Buying the Listing"
• External Market Forces, as well as how sellers estimate their Home Value
• How buyers Assess Value and Comparison Shopping
• The Counterintuitive Nature to getting the results you want.