ABOUT TERRIE O’CONNOR REALTORS Setting the standard for excellence in real estate since 1991, Terrie O’Connor Realtors is your trusted, independent guide to buying and selling in northern New Jersey and southern New York. Backed by decades of experience, our dedicated team of 375 licensed professionals across seven branch offices is committed to providing hallmark service to our communities. Whether you are looking for your dream home or want to find out what your current property is worth, we are here to ensure your success.
201.786.9055 | www.tocr.com
HOME PRICING STRATEGY
PRICING YOUR HOME Visit open houses in a relative price
Access recently-sold data of properties
range. Ask a Terrie O’Connor Realtors
by visiting Realtor.com or other popular
agent to provide you with this
real estate websites.
information. By visiting these properties,
Drive by homes which have sold and
it will enable you to have a broader
assess their appeal compared to your
pricing perspective. Thus, when you’re
property. Remember, the exterior is only
discussing pricing strategy options with
one part of the equation.
your real estate agent, you will both be on the same page.
Although you can learn the sales price, what is not always known is the
A key factor is determined by what
motivation and circumstances of both the
Before selecting a price
pricing strategy. Homes and the lifestyles they afford are not commodities, and therefore, should not be marketed or priced as interchangeable widgets. Due to this distinction, Terrie O’Connor Realtors is a proponent of a customized pricing strategy to tailor a plan based on your best interests.
HOME PRICING HISTORICAL PERSPECTIVE Overpricing a property can lead to homesellers watching their homes languish on the market for a much longer period than they hoped. Others have agreed to a sales price lower than they should have accepted due to underpricing their home. Pricing of real estate is not a science, it never will be a science.
frame is for moving and selling.
sold.
to market your home, first determine the best
your motivation and desired time
seller and buyer of each property that has
TERRIE O’CONNOR REALTORS RECOMMENDED PRICING STRATEGY WHY PRICING IS NOT A SCIENCE Real estate professionals admit when they ask fellow agents and appraisers to suggest a price for a property they intend on marketing, they will receive numerous and significantly varied pricing recommendations. While real estate professionals have access to extensive market data and can easily preview competing listings, pricing a home is far more nuanced than simply analyzing comparable sales. Too often, comparable properties and competing properties are treated as though they are the same, when in reality they serve very different purposes. Comparable homes help establish market value, while competing homes influence how buyers perceive a property's value at the time it enters the market. Understanding this distinction is essential to developing an effective pricing strategy. Homeowners should work with a real estate professional who can clearly explain both perspectives and position their home to compete successfully in today's market.
Terrie O’Connor Realtors agents should acknowledge that no two properties are alike and all homesellers’ circumstances are different. The following three pricing strategies should be shared, as well as displaying revelant home data that pertains to your property to ensure the best pricing strategy is selected.
1. MARKET STRATEGY ANALYSIS
Select price as close as possible based upon what data and information compiled through a market analysis or appraisal would suggest.
3. RETAIL PRICING STRATEGY
Benefit Property typically will be more likely to appraise out and appeal to a broader range of buyers and will especially attract more knowledgable buyers and buyer agents.
2. LESS IS MORE PRICING STRATEGY
Select a price nominally lower than the data suggests in order to create more intense and immediate attention from serious buyers.
Include a “reasonable” negotiating cushion. Just as many retailers will first increase a price and then lower it to gratify the buyer, so too will many homesellers. Anticipating that buyers will offer less, they price their property higher than market value to begin with. They specifically add a negotiating cushion to their asking price with a willingness to “grudgingly” come off their price. Benefit Since most buyers will offer less than the asking price, more as a negotiating strategy than even their perception of value, this pricing strategy can create the sense in buyers that they got a good deal.
Benefit Can create more competition and lead to multiple offers.
QUESTIONS TO ASK
What current market data will
Which homes have sold within
What can be done to increase
How long are homes in my price
How will you help negotiate the
YOUR TERRIE
buyers be evaluating when they
the last six months?
my home’s value?
range taking to sell?
best price?
Which homes were removed
Why did certain homes not sell?
What is the overall absorption
How will you target the right
rate in the community?
buyers for my home?
O’CONNOR REALTORS AGENT
assess my property’s value? How is pricing trending?
from the market?