I meet people every week who have the difficult challenge of choosing a price for their property or home for sale.
People who choose well can gain thousands of dollars. Those who fail often will lose thousands of dollars or worse... not sell at all. Frustratingly, pricing real estate in the current market requires inverse thinking. The seller must go against what their brain and heart tells them and trust the instincts of someone who they barely know.
First, I have spent 95% of my sales and marketing career pricing, selling and marketing high priced, high value items. When I launched a product, my major concern was to be priced 7 to 10% higher than my competition. On top of this pricing, I had built a service and support system that added 20 to 30 % more value to my clients.
This added value and promise of service created two main benefits; 1) my business was more profitable than my competitors and I used the profit to add more value added services and 2) my clients businesses became more profitable because my products were better and more reliable. At the end of the sales day, my ongoing service and support created increase business and personal success for everyone around me.
However, if my products were priced too high, sales would not materialize at the proper RATE. My cash flow would suffer and down the line, every aspect of my business would need to change. The lessons I learned echo in my mind to this day.
Price too high without the value for too long and you lose sales that cannot be recovered.
On the flip side, if I priced a product and it sold out fast, I always felt as though we were leaving money on the table. It's great to make a lot of sales but it costs money to process any transaction and fast sales often mean that the price is too low.
The process I am describing is what I call the
Buyer/Seller dynamic. Millions upon millions of pages of research has been printed on this subject, yet few people truly understand this dynamic. Those who do understand true Buying and Selling dynamics make millions: Think of Donald Trump, think Apple and Mac, Think Jim Pattison.
What most people fail to recognize is that great business leaders all rely on buying and selling assets, products and services and they do so based on instinct but also using science and a definitive system that they repeat. The "system" these leaders use is part of their secrets to success but in actuality, they are not secrets as much as a system combined with their experience.
A simple fact is that all the data and information needed to succeed in any business is easily accessed by nearly anyone. What separates the successful from the failures is their ability to create action and utilize the existing data.
In summary, information multiplied by science, divided by experience equals successful choices!
As a professional in the real estate field, I am always striving to upgrade the level of service that I provide to my clients.
I offer friendly service and strategies that get results.
If you are thinking of buying and selling property, I welcome your business and pledge to exceed your expectations of a
REALTOR®.
