1.                   An agent has no control over the market or sale prices, only the marketing plan.

2.                  Never select an agent based on their recommended listing or sale price.

3.                  Pricing strategies in “Buyers” and “Seller” markets:

(a)  Overpricing in a seller’ market may sometimes be OK.

(b)   Overpricing in a buyer’s market is disastrous

Market trends are as important as pricing…make sure your agent explains their significance!

4.                  Four kinds of numbers are used to represent your property’s position in the market place!

a)   Cost                     What was paid plus any capital improvements

b)   Price                   What the seller wants.

c)   Value                  What the buyer is willing to pay.

d)   Market Value     What a willing buyer and seller will agree upon.

Of these four numbers, when your home is For Sale, ONLY the market value is of importance to the purchaser.

5.                  Regression and Progression of property values:

a)  Regression -             The phenomenon of an expensive house being decreased in value because of less desirable homes around it.

b)  Progression - The phenomenon of a home selling for a higher than normal value because there are more expensive properties or a very desirable neighbourhood nearby.

6.                  The Principal of Substitution:  The value of a home improvement (e.g. Ceramic tile in the hall and Kitchen)  is based on the value added as perceived by the potential purchaser, not what it cost the owner to install.

7.                  Here are some common reasons for overpricing:

A.     Upgrades have been added since purchase, (upgrades are purchased for the benefit and enjoyment of the owner, not for resale value)

B.     Need (the need for money does not increase value!)

C.     Seller wants to move to a higher priced area.

D.     Original purchase price was too high.

E.     The Vendor lacks factual comparables for market value.

F.      Vendor wants bargaining room (listing more than 3-5% above market value actually reduces bargaining power)

G.     The move is not necessary (no motivation.)

8.      The biggest impression and most impact a property makes upon purchasers and agents is in the first few weeks of the listing.

Therefore, the home should be Priced Correctly and be in Ready to Show condition at the beginning.

Pricing your Home Accurately

And

Within 2 - 4% of Market value

Is Essential!

9.         Benefits of proper pricing:

A.                 Increased salesperson response (generates greater urgency)

B.                 Exposure to more prospects (more showings)

C.                 Better response from realtor’s marketing and promotional efforts ( generates more calls from everywhere)

D.                 Attracts more offers and sometimes competitive offers

E.                 Means more money to sellers.

F.                 Faster sale

G.                 Less inconvenient to seller and their family.