Real Estate Pricing Psychology

The Real Estate Pricing Psychology

April 6, 2018 | Listings | By: The Goodhart Group

The real estate market is always changing. With that, the real estate pricing psychology is changing as well. The final sales price for your home will be determined by the market at the time your home is presented to the marketplace.

These market factors include competition from other sellers in and outside your neighborhood as well as local and national economic conditions. Much like the stock market, home prices are not lasting, as values are always fluid.

It is important to remember that the real estate pricing psychology plays a big role in determining the value of your home. At the end of the day, agents and sellers set a list price but buyers determine the value based on the marketplace.

What Impacts the Real Estate Pricing Psychology?

The first 48 hours your home is on the market are critical. Agents and potential buyers will first scrutinize your home online. Ninety percent of house hunters will see your home online before they step through the door. They will review five factors to see if your home matches their criteria:

  1. Price
  2. Condition
  3. Location
  4. Physical attributes
  5. Access

How to Know If You Have the Right Pricing Strategy?

Within minutes, buyers will form an opinion of your home based on these five factors. You can control only three of these factors: price, condition, and access. If your home does not reflect the criteria of current buyers, it will become evident in the first two weeks on the market. 

If you receive an offer in the first two weeks, your home is priced within the market. If your home is having a good number of showings but no offers, it is probably priced above the market by 5%.

If it is receiving few showings and only drivebys and online views, it is likely above the market by 10-15%.

This is why it is so important to price the home properly at the outset – when it is likely to receive the most online views. The quicker the offer, the higher the sales price.

How do We Help?

We will decide together the price at which your home will be presented. We will base the list on the sales of comparable sold properties in your area, available properties, the condition in which you would like to present your home, the physical attributes you can’t change, its location, and how easily agents and their buyers can access your home.

Most importantly, we will review the current market and buyers’ expectations considering market trends and the real estate pricing psychology.

We want you to make an informed decision that will result in a sale that provides you with the best price the market will provide at the time you need to sell. Together, we will work to find the price that serves your best interests.

Thinking about putting your home on the market? Let’s meet for coffee and talk strategy. 

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