the price is right?

1. the price is right? Presented By: Clara Lee Coldwell Banker Residential Brokerage Palo Alto Midtown

2. pricing strategies Pricing your home is a complex task that requires the expertise of an experienced real estate professional. Consider the following: • If the listing price is set outside of the proper parameters, potential buyers may be deterred from considering your home • Arriving at the optimal listing price requires evaluation and understanding of current marketing conditions, the marketable features of your home and recent trends in the real estate market • The closer your home is priced to fair market value when it first comes on the market, the more likely it will sell quickly at the highest price • The higher your home is priced above market value, the fewer number of available buyers

3. pricing strategies We will advise you of the following factors when assisting you in determining a listing price for your home: • What have buyers recently paid for similar properties and DOM? • Will this price attract enough attention by buyers to generate showings and acceptable offers? • What properties are competing for the attention of buyers right now? • What properties have not sold, indicating what prices buyers are unwilling to pay under current market conditions?

4. determining the list price We will help you determine the list price of your home by providing you with a thorough market analysis. It is a skill where experience and judgment are fundamental. Some of the factors that influence the list price of your home are: • Physical Qualities – Location, floor plan and style • Market Conditions – Interest rates and availability of financing, buyer and seasonal demand, state of the economy and recent property sales (appraisals) • Competition – Number, pricing, condition and location of comparable properties on the market The price you paid for your home or the proceeds you want from the sale have no effect on the value of your home.

5. the effects of overpricing Overpricing your home will attract fewer potential buyers and may cause it to sit on the market for longer than desired. To the buyer, too much time on the market indicates an overpriced property and often is perceived as an opportunity to negotiate a price lower than the market might typically bear.

6. the effects of overpricing Pricing your property outside of the reasonable range can have the following adverse results: • Low level of brokerage activity – showings decrease when a property is perceived as being priced “out-of-the-market” • Reduction in exposure – fewer buyers will view your property because it is out of their price range • Difficulty in obtaining financing – Lenders look at fair market value to determine the amount they will finance and often require the buyer to make up the difference in cash • Increased market time – your property is viewed as overpriced and becomes “stale,” even if price reductions are implemented

7. potential buyer pyramid Statistics have shown: • There is a 95% chance of sale if a home is priced at market value • There is a 50% chance of sale if priced at 5% over market value • There is a 30% chance of sale if priced at 10% over market value • There is a 20% chance of sale if priced at 15% over market value