Ohio Real Estate; Pricing in a Competitive Market

Posted by Joe Zingales on Monday, November 25th, 2013 at 6:07pm.    994 Views


Price is Key to Quick Home Sales; House Value

When counseling your sellers on price always let them know of the dangers of overpricing! By pricing a home 10% over the Fair Market Value as little as 2% of prospective purchasers will look at it. At 5% over the Fair Market Value you will only attract 30% of the prospective purchasers. Pricing at Fair Market Value and you will attract 60% of the Prospective Purchasers. 5% below Fair Market Value and you attract 80% of Prospective buyers and at 10% below Fair Market Value and you attract 92% of the Prospective Purchasers! This is valuable information to help your Sellers.

When a property is priced correctly and  in good condition it will sell. It will sell faster and for close to the listing price typically. Sellers should keep this in mind when listing. The first two weeks a property is on the market is usually when the most activity occurs. Homes that are priced correctly very well may sell within the first 30 to 60 days of being on the market.

The Danger of Over-Pricing a Home's Value

Overpricing will often lead to properties being on the Market longer and eventually selling below market value.  Potential buyers will buy other homes because the higher price will make the other properties more of an attractive buy. There is an old saying price them low and watch them go. Many sellers don't realize (and many agents won't inform a seller) that when the home is over priced, all the current buyers looking for a comparable property are going to miss it. Their Realtors are sending them homes in their chosen price range, and when buyers search, they set their own upper ceiling. The largest group of interested buyers occur in the first six weeks of listing a property and important to price correctly in within the fair value market range. By the time a seller comes down to a reasonable fair market value, the buyers have moved on. You can still sell of course, but you won't have near the original number of likely buyers.

If you need assistance selling a home in NW Ohio, give me a shout, I and my incredible team of expert Ohio Realtors can get your listing standing head and shoulders above the rest and have the industry savvy to bring the qualified buyers.

Joseph Zingales - 440-346-2031

josephzingales@aol.com

2 Responses to "Ohio Real Estate; Pricing in a Competitive Market"

Diane Goodwin wrote: Joseph, what a great article. So true. Overpricing for everyone involved usually ends up in a lot of finger pointing and accusations. Everyone would like to believe that anything we have for sale is worth a lot more than truly what the market indicates. Quality,quantity and location are huge factors in pricing as well. The Realtors that I know do more than stick a for sale sign up and hope for a sale. Thanks for the great article.

Posted on Tuesday, December 3rd, 2013 at 2:16pm.

Juanita Limes wrote: Excellent insights for sellers Joseph!

This was a great post. Providing quantifiable and substantiated data is key to pricing. Sellers can be spared a lot of grief when provided a low, medium and highest price range based on their time frame to sell and more effectively reach their goals and required net when strategically planned. Keep it coming!

Posted on Tuesday, December 10th, 2013 at 8:43am.

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