In Real Estate Sellers often price their property following one of these strategies. Depending on market condition and factors governing a transaction they may or may not be successful.
1. Premium Pricing
Also called "Above Market Pricing" this is the most popular choice for Sellers. Seller decides on a price above 150% recent transacted price based on recent transaction.
There could be several reasons for this from Seller apart from basic human nature of greed factors like emotional attachment, Seller bias, to avoid Seller remorse etc., Pricing too high puts the seller at risk of becoming a stale property on the market.
2. Market Price
When a Seller prices his property at around 110% of recent transacted price it is tuned to Sell. Most of the Agents prefer this mode of pricing slightly above the market giving sufficient room for negotiation.
When a Seller prices his property at around 110% of recent transacted price it is tuned to Sell. Most of the Agents prefer this mode of pricing slightly above the market giving sufficient room for negotiation.
3. Below Market Pricing
Some Sellers due to their circumstances resort to pricing their property below the recently traded price. This could be a distress sale. Typically Price would be 75% or below the market price.
Some Sellers due to their circumstances resort to pricing their property below the recently traded price. This could be a distress sale. Typically Price would be 75% or below the market price.
While each of these strategies are defended by those following them, an experienced Real Estate Agent can guide the Seller on Comps or Comparable Market Prices for the specific location and suggest best pricing strategy based on market condition and Sellers' need. In Real Estate 'the first price is the best price'. So it is advisable for Sellers to take help from the market intermediary - Broker to finalize the best pricing strategy.
An Agent would take into consideration market value of the property and market condition before finalizing best price for the property as it is important for the property to generate peak interest in the first week into the market.
