Pricing in the real estate market is a delicate dance, especially in today’s climate of soaring housing prices. As a Realtor® my role goes beyond just listing properties; it involves managing expectations and guiding clients through the intricacies of pricing their homes effectively.
In a market where vendors may be tempted to test the waters with higher price points, it’s crucial to approach pricing with caution and realism. While securing listings is essential for business, setting an unrealistic price can backfire when the market responds with silence in the crucial first weeks. My approach to pricing begins with gathering comprehensive data on recent sales activity in the area, spanning the last three to six months. By analyzing active, sold, and pending listings, I establish a range that reflects the market’s true pulse. This process ensures that the price is grounded in solid data rather than wishful thinking. When setting the price, I aim for a balance between competitiveness and market value. Unless a property can truly
justify being at the top end of the range, I opt for positioning it in the middle. This strategy not only invites buyer interest but also leaves room for negotiation and potentially surpassing the highest comparable sale. However, if a vendor insists on an a price outside of the market analysis, it becomes a strategic decision. In such cases, I may agree to list at the desired price for a limited time, closely monitoring traffic and feedback. If the response is underwhelming, I advocate for a swift adjustment to align with market realities. Transparency is key in navigating these discussions with vendors. I prioritize open communication and frank dialogue, emphasizing that pricing is ultimately a business decision. It’s about investing time and resources wisely, rather than clinging to an unrealistic expectation.
In today’s savvy market, buyers have access to a wealth of information, and a well-priced property that aligns with comparable sales should attract attention swiftly. By adhering to these principles of diligence, realism, and transparent communication, I strive to ensure that my clients’ properties are positioned for success in the dynamic real estate landscape.
In summary: 1. I prioritize managing
relationships and expectations. 2. I rely on hard data from recent sales activity in the area. 3. I avoid setting prices at the high end unless fully justified by comparable sales. 4. I encourage frank and transparent dialogue with clients about pricing. 5. I approach pricing as a strategic business decision, considering the investment of time and resources.
EXIT REALTY PEI | 41 MacLeod Crescent, Charlottetown Cell: 902.916.1396 | peterthornton@exitrealtypei.com www.exitrealtypei.com
SPRING24 www.pei-living.ca
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