Home Selling > Psychology of Home Pricing

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Pricing is both an art and a science. In order to correctly price the house, there is a mathematical formula for market evaluation. That is science. Most buyers and sellers part ways where you should "list" the house at. That is art. Throughout this article, let's assume that the property has a fair market value of $250,000.

For sellers, they list their house at $259,000 to $275,000 - giving it "room for negotiation".

In comes the buyer who clearly seen a variety of homes that range from $225,000 to $275,000 for their intended target purchase of something closer to the $250,000.

Put your Buyer's cap on. Your home (at FMV $250K) is priced at $269K. When comparing the homes the buyers have seen, it is fairly clear that your property has similar features to those around the $250K range. However, you were asking $269K. Then, when the buyers compare the $260K - $275K homes, yours clearly lack some key features for homes priced in that range. The floorplan is different, the overall appearance and feel for the home just doesn't justify anything over $250K.

The buyers hesitate to put in an offer for fear of making you, the Seller feel insulted with the offer. Since there are so many more "correctly" priced home out there, they just move on to giving a fair price to the seller who ask for it. The negotiation process went well and everyone felt they won.

On the other hand, all you wanted was $250K too. But you padded "room for negotiation" that prevented the buyers away.

Hence, you sit on the market a little longer and you inconvenienced yourself just a while longer - all for room for negotiation and all you wanted was a fair market price for your home.

There is a psychological game to play in pricing. As for 3:16 pricing style, we typically do not add room for negotiation. That gives you the best value for your home. In fact, if you want to give yourself a sure-win (pricing for motivation), price it slightly below the market value to make it exceptionally attractive. You will sell your home in 2 weeks instead of 2 months.

Pricing is very personal especially homeowners. No one wants to give their house away and no one should. Hence, hiring the most qualified real estate agent for the job is critical in your success of obtaining the most money given the least amount of inconvenience.

Loreena Yeo and 3:16 team REALTY employ the Systematic Market Approach to Home Selling in the greater Frisco TX areas. We have successfully sold every single home we listed today, except for one. The homeowner who became very ill decided not to sell his house until his health gets better. Read satisfied client testimonials of the Systematic Market Approach Home Marketing plan.

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About Loreena & 3:16 team REALTY

Loreena Yeo - Realtor(R) in Frisco TX | Broker
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Direct (214) 783-2210
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Read about what our satisfied clients have to say:

When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

Eric & Tomoko Quere, Plano TX

Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

Jenn & Glen Miller, Denton TX

We were completely impressed with Loreena. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she surpassed them. Knows her market extremely well, not just the technical market pricing data, but the nuances of all the neighborhoods as well. One of the most responsive and professional persons I've met in my entire business career.

Ruth & Jerry Meek, Frisco TX

I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

Sally & Phillip Barnard, Frisco TX


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