Interesting Article

The following short article was originally published in the National Association of Realtors weekly e-magazine. It vividly illustrates ideas which lack marketing expertise.

As you read the article, please notice that the question asked was NOT: "How do you sell a home fast in this market?" It was: "How do you price a home in this market." The agent's response illustrates a prevailing attitude many real estate agents hold dear - that lowering prices is the only way to sell property. We disagree. We believe in realistic and competitive pricing, but also know from experience that proper and effective marketing can overcome a multitude of pricing objections. We always try to sell benefits - not price - when selling a home. When buyers have a real appreciation of a property's features and benefits, they will be willing to pay more for that property than for one that lacks these value-added features, and they will feel more urgency to do so.

Daily Real Estate News | December 17, 2007

Market Brings New Rules for Pricing a House

How do you price a home in this market? Pat Hiban of the Pat Hiban Real Estate Group in Ellicott City, Md., says comparables are irrelevant these days.

“You want to price it less than the active competition,” he advises.

He dismisses the notion that someone who is less eager to sell a home quickly can set the price a little higher. In this market, the lower price is “realistic,” Hiban says.

He suggests looking at the three most competitive active listings that the seller will be up against. If there are no real differences between those houses and your seller’s home, undercut the competition on price. If the house you’re trying to sell has something that the competition doesn’t — say a finished basement — then go with the same price.

Source: The Baltimore Sun, Jamie Smith Hopkins (12/14/07)