11. Pricing Psychology

(Note This is a rewrite, but it’s been a while and it’s important!) We all overprice a listing, occasionally. After all, this real estate thing is an inexact science. When (not if) it happens to you, it’s crucial that you face up to it, and not use one of these lame excuses: 1. You’re too […]

When I list a property, I always explain to my sellers that every potential buyer fits into one of these three categories: 1. Bargain Hunters – These types will wait until your property has been on the market for some time; then they’ll start lobbing low-ball offers. There’s no need to discuss Bargain Hunters any

This RAM is intended mainly for newer agents or any REALTOR® with the right mindset, including myself. Sometimes, writing this article every two weeks reminds me of what is important, so I’ve already implemented steps to follow my own advice! Have you ever had a buyer client tell you, “We didn’t want to bother you

‘Running the Odds’ is a simple technique to help sellers and buyers take some of the mystery out of pricing. Here’s an example where my listing clients and I are trying to determine the best list price (somewhere between $799,000-$825,000). Option 1: Sale Price Odds with $825000 List Price <$800,000 = negligible ~ 0%-1% $800,000-$820,000

Click here to read Part 1 Last week, I wrote about the fundamentals of why buyers buy, and how the brain must perceive good value (consciously or otherwise) to trigger the “let’s write an offer” response. So, what if a buyer does not perceive good value? Simple: They focus on a negative. 👎 For example,

Why do buyers buy? The reasoning is not much different in real estate compared to anything else. Buyers are comparison shoppers. They review all the available “goods” on the market and then choose the item that gives them all the features they want. And most importantly… The one that is offering the best value. 🤑

The biggest, most motivated category of buyers for your new listing are ‘Current Buyers’, They’ve already viewed most or all of your competitors, but they’re not satisfied, for whatever reason. So, what are they doing?

A skilled Realtor does not let the homeowner set an unrealistic price. Instead, they take an unbiased view of the property, determine a realistic price, and have market evidence to back it up.