05.11.11
Posted in Madison MS real estate tagged Pricing Madison MS Real Estate at 7:00 am by Mississippi Real Estate Agent
Most, if not all, Madison MS real estate buyers begin with an Internet property search. Even buyers who are working with real estate agents start the weed-out process on the Web.
Because real estate has such a strong virtual presence these days, smart internet marketing (including price setting) is an absolute must for selling your home quickly. Here are a few pricing techniques to maximize the number of potential buyers who find your home when they search for Madison MS real estate online:
- The theory of 9s – Most real estate search engines have parameters that filter listings based on $25,000 or $50,000 price blocks. For instance, you can search for houses valued $150,000-$200,000 or $200,000-$250,000. Many sellers don’t seem to take this into account. Instead, properties are listed using the same marketing techniques that grocery stores use to sell you a gallon of milk — they use a lot of 9s in the pricing to make it look less expensive. However, today’s buyers aren’t going to be fooled by that system.
- How to span markets – While you might think listing your house for $399,900 will make buyers see your home as a bargain, you might actually be losing out on a lot of interested buyers. When buyers search for houses from $400,000-$450,000, your property won’t show up, so you’d be better off upping the price a little to $400,000. Then you’ll expand your potential buyer base because it will show up in property searches priced $350,000-$400,000 AND searches priced $400,000-$450,000.
- The pros and cons of under-pricing your home – If you’ve priced your property somewhere in the middle, like at $309,000, common sense might tell you that lowering the price $9,000 to price it at $300,000 would be undervaluing it. However, getting many more buyers through the door will certainly help your property sell faster. While I do not recommend purposely under-pricing your home, if you did happen to undervalue it, buyers will notice and you might end up with a multiple-offer situation allowing you to get even more from your property.
Don’t resort to out-dated marketing tricks that might actually be hurting your chances of a fast sale at top dollar.
If you need help pricing your Madison MS real estate, I can help. Call me today at 601-942-3392 or email me at Paula@PaulaRicks.com for more information.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
REALTOR® and Broker Associate
443A Northpark Dr, Ridgeland, MS 39157
601-942-3392
Paula@PaulaRicks.com
www.PaulaRicks.com
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Pricing Madison MS Real Estate
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03.28.11
Posted in Madison MS real estate tagged Pricing Madison MS Real Estate at 7:00 am by Mississippi Real Estate Agent
There are a few misconceptions about how to set the sales price for your Madison MS real estate. Here are five common pricing myths and the reality behind them.
Myth #1: It’s OK to test a high price on your Madison MS real estate just to see if anyone will buy it at that price.
Truth: If you’re serious about selling your home, don’t play games. In this buyer’s market you have a very small window of opportunity to pull in serious buyers when your home first enters the market. If you play games, like over pricing your home just to test the market, buyers will stay away in droves.
Myth #2: You should price your Madison MS real estate higher than the market value to allow for room to negotiate.
Truth: No matter what your reasoning or rationale, overpricing your home is never a good idea. When your home is overpriced, very few potential buyers inquire about it or visit it. If no one wants to buy your home, you won’t have anyone to negotiate with.
Myth #3: The appraisal value of your home has no impact on the sales price of your home.
Truth: Lenders consider the value of your home to be the price for which the home is appraised. For example, if you and your buyer have agreed on a sales price of $300,000, but the appraisal comes in at $280,000, the lender considers the value of the home to be $280,000, not $300,000. When this occurs, buyers will want to renegotiate the sales price of the home to match the appraisal price.
Myth #4: Real estate agents want to price homes high because they’ll make a higher commission.
Truth: If you’ve done the work needed to find a great real estate agent, you should trust him or her to price your home correctly. Because of their experience, real estate agents understand more than anyone else the importance of properly pricing your home. If they’ve incorrectly priced your home, it won’t sell, and the agents earn nothing.
Myth #5: Real estate agents want to price homes low because they’ll sell faster and easier without the agents having to do any work.
Truth: Professional real estate agents know that setting the price too low can be almost as harmful as setting the price too high. Buyers who are looking in a specific price range may not consider your home because of the low price tag. They assume it will not fulfill their needs or worry that there’s something wrong with it.
If you’re ready to sell your home, I can help you price it right. Give me a call today at 601-942-3392 or email me at Paula@PaulaRicks.com for more information.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
REALTOR® and Broker Associate
443A Northpark Dr, Ridgeland, MS 39157
601-942-3392
Paula@PaulaRicks.com
www.PaulaRicks.com
Tags:
Pricing Madison MS Real Estate
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05.06.10
Posted in Madison MS real estate tagged Pricing Madison MS Real Estate at 5:50 am by Mississippi Real Estate Agent
The debate is as old as the real estate industry. Does a low, highly competitive selling price for Madison MS real estate actually generate a faster, more profitable sale than a slightly inflated price with a willingness to negotiate? Yes, it is an age-old debate. Yes, it has never been more important that sellers make informed decisions about their asking price and negotiating strategy.
A seller with an unreasonable opinion of their home’s value is either a wishful thinker or does not have the benefit of an accurate comparative market analysis and a real estate agent who specializes in the area.
Get Real, Know the Facts
When sellers decide to list their home in the Madison MS real estate market, they usually have an opinion of value based on reported sales of similar properties. Consciously or subconsciously, most homeowners follow the real estate activity of surrounding homes.
However, every real estate transaction stands independently. In today’s market, buyers and sellers negotiate to capitalize on tax incentives, green-initiative improvements, closing fees, homeowner credits and local incentives. Thus, the “neighborhood selling price” may not represent the price you can actually get for your home.
Real estate agents use differing strategies to secure listings and set sales prices. Therefore, a seller who requests proposals from three different Madison MS real estate agents may well get three different opinions of value:
1. One agent may want the listing at any price and be willing to accept an owner’s requirement for a high asking price just to land the listing.
2. Another agent may be conservative and encourage a low asking price in the hopes of generating superior demand. This strategy was effective in the boom years of 2006 and 2007.
3. A third agent may combine his knowledge about the property, the neighborhood and today’s real estate market to come up with the optimal listing price.
The Optimal Listing Price
Responsible Madison real estate agents view the property from three postures.
1. First we inspect the property, top to bottom. We understand its history, the neighborhood, its strengths and its weaknesses.
2. Next, we do our research. We compile a complete, relevant list of recent sales, a thorough list of properties on the market and a comparable list of recently concluded Madison MS real estate transactions.
3. We balance this information against the cost of new construction. We factor in what improvements might be necessary to stage the home more effectively. And, we use this quantitative analysis, called a comparative market analysis, to recommend a strong selling price designed to garner demand.
This is not a whimsical exercise. This is about establishing the maximum selling price your Madison MS real estate should achieve.
To further discuss how you can realize the greatest real estate value for your home, contact me today at 601-942-3392 or by email at Paula@PaulaRicks.com.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Pricing Madison MS Real Estate
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08.24.09
Posted in Madison MS Homes for Sale tagged Pricing Madison MS Real Estate at 8:28 am by Mississippi Real Estate Agent
If you’re looking for the right price to list your Madison MS home for sale, you may need to call on a real estate professional. Pricing your home to sell in this buyer’s market is part research and part experience.
You don’t want to overprice your Madison MS home for sale because you don’t want it to sit on the market week after week. A home that is priced too high for the area will not attract as many buyers as a more reasonably priced home. If you price your home below market value, you’re likely to receive several offers that will drive the sale price up, so you don’t have to worry about getting less money for your home than it’s worth.
A good way to get an idea of the current value of your home is to get the sale prices of homes that have recently sold in your area. Your real estate agent can gather that information for you. Look for homes similar to yours in size, location and condition.
When setting the price of your home, you may also want to take a look at the listings that have expired in your area. You may find that the homes were overpriced for your neighborhood or that some homes remain on the market because the home wasn’t updated or in good condition. Try to learn what caused the listing to expire and work to avoid the same mistakes.
You should not list your Madison MS home for sale at a price that you aren’t comfortable with. Explain to your agent the concerns that you have about the home’s sale price and ask for his or her professional opinion about the price that you have chosen.
Want help pricing your home correctly? Let me put together an analysis of current home prices in your neighborhood. It’s free and at absolutely no obligation. To get your analysis, call me today at 601-942-3392 or email me at Paula@PaulaRicks.com.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Pricing Madison MS Real Estate
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