How The Wrong Price Cost Us a Year and Money

As a real estate agent, setting the right price for a property is crucial to a successful sale. However, many sellers may not be aware that there are only three options when pricing their home. In this blog post, we'll discuss those three options and why it's essential to choose the right one.

My name is Gary McGowan, and I've been a real estate agent for many years. I've seen it all when it comes to pricing strategies, and I've learned from my mistakes. In fact, I made a mistake many years ago when I chose the wrong pricing strategy as a listing agent. Since then, I've learned my lesson, and all of my clients have learned it too.

So, what are the three options when it comes to pricing your home? They are: on the market, in the market, and ahead of the market. Let's discuss each of these in detail.

On the market: This is when you price your home really high to see if you can get a buyer who is willing to pay that price. However, this is not a great strategy because it often leads to your home being on the market for a long time, which can turn off potential buyers.

In the market: This is when you price your home to be competitive with similar homes in the area. While this may seem like a good strategy, it doesn't make your home stand out from the competition. It's important to remember that buyers have many options to choose from, and you want your home to be the one that stands out.

Ahead of the market: This is the best pricing strategy. It means pricing your home so that it stands out from the competition. You have a great product that people want, it's in a great location, and the pricing is fair to everyone who walks through the door. This strategy will make your home the one that everyone is talking about, and it will increase the chances of getting multiple offers.

Let me give you an example to illustrate the importance of pricing your home ahead of the market. I once had a client who was building beautiful homes. We put together a pricing strategy, but the market had started to shift since they purchased the properties. We were up against the gun, and we had to sell at a specific price range in order for everyone to be happy at the end of the day.

We received an offer fairly quickly, but my mistake was letting the seller do the driving. I should have provided guidance and put my foot down when it came to pricing. We turned down the offer, and many months later, we sold the home for less than what we were offered initially.

The lesson here is that the first offer you receive is usually the best offer, especially in a last-days market. By pricing your home ahead of the market, you can ensure that you receive the best possible offer right from the start.

Pricing your home correctly is crucial to ensuring a successful sale. Remember, there are only three options when it comes to pricing your home: on the market, in the market, and ahead of the market. Choose the right pricing strategy, and you'll be on your way to a successful sale.