Setting the price correctly in the beginning is crucial.
It is critical that an agent prevent the seller from shortcutting the pricing process by jumping to a pricing decision, thereby making the biggest and most costly mistake a seller can make. Because most sellers are fixated on the price, they want to fast-forward to it and they expect the agent to tell them immediately what their home is worth.
Most sellers do not realize that pricing is not a number, but rather a STRATEGY.
They are not aware that there are numerous variables that affect the pricing strategy such as knowing how real estate agents work, understanding the market trends and valuing the process of “how buyers buy”, especially for rental homes on the Outer Banks where there are other factors that determine value; such as rental income (or potential), proximity to a beach access, and the interior amenities of the home; just to name a few.
This tendency to jump ahead to pricing is just human nature, so real estate professionals must acknowledge this tendency and work with the Seller to stay on the path to an accurate valuation strategy. It is my job to slow the seller down enough to get them to think this through and look at pricing from a different perspective.
Here’s an example. Thinking back to an Ikea product that I purchased - furniture in a box, and it says “minimum assembly required”. I get it home and excitedly open the box and begin sorting the pieces across the floor. Skimming trhough the directions I see a diagram with various “A”, “B” and “C” labels, all interconnected. I think to myself, “this looks pretty simple!” At least I am hopeful that it is and eagerly start to put the pieces together and see progress as the new piece of furniture comes together. I continue now without looking at the instructions thinking that I have it now - it's easy. I got this. At some point into the process, I start to realize that there is a problem. The pieces aren’t lining up like I envisioned, there are some extra pieces lying around, and I know that the overall, somehting just isn’t right. And there it is – my well-intended enthusiasm led to shortcuts and now I've got a big problem.
Strategic Pricing approach as a STRATEGY.
After 23 years in the real estate business, I have the skills needed to navigate the pricing strategy, and know how to help sellers understand how we agents work, apply market trends and value the process of “how buyers buy” to ensure that they get the maximum return on their investment.