Mastered It! 7 Pricing Strategies to Safeguard Against Expensive Listing Mistakes

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In a market with high interest rates and low inventory, it’s crucial to price listings accurately from the start to avoid extended days on market, frustrated sellers, and expired listings. Sharpen your pricing skills with a proven approach that stands the test of time.

Follow the 10% Rule for Comparable Sales Selection

Start by selecting comparable sales that are within 10 percent of the lot size and square footage of the subject property. This ensures accurate pricing based on a price-per-square-foot analysis.

Understand Absorption Rates

Absorption rates help estimate market demand and set prices, not just in commercial real estate but also in residential sales. Different inventory levels indicate whether it’s a seller’s market, a balanced market, or a buyer’s market, influencing pricing and marketing strategies.

Use Rate of Absorption for Pricing Strategy

Calculate the rate of absorption to gauge how quickly properties are selling in the market. Tailor your pricing strategy accordingly to position listings for maximum success.

Implement 3-Tier Pricing Approach

Categorize properties into top, middle, and bottom tiers based on location, condition, and amenities. This helps sellers understand the market positioning of their property and make informed pricing decisions.

Know Your Local Market Dynamics

Incorporate factors like premium features, buyer preferences, location specifics, and seasonal shifts into your pricing strategy to accurately reflect the local market dynamics and command the right prices.

Explain the Impact of Upgrades on Salability

While upgrades can enhance the appeal of a home, they may not always increase its market value. Educate sellers on the difference between salability and value when considering property upgrades.