I’m Ruth Krishnan with the Krishnan Team, and I wanted to talk to you about pricing properties. A lot of times people ask me, “how do we decide the price for a property?” I wanted to take a minute to talk to you a little bit about how realtors think about price. You’re probably thinking that if you underprice a property, you’re going to be leaving money on the table and you may not make as much money. There’s a lot of different ways to think about price. I will say if I had to pick one strategy, it would actually be that, to underprice the property.
The reason why is because if you have multiple buyers that show up to bid on your property, then if you put yourself in their shoes, if somebody else wants it, you’re oftentimes going to push harder. Also, most of the time the buyers are going to write a non-contingent offer as long as they’ve been delivered a clean disclosure package that allows them to really understand the property. So that’s going to mean that there’s not negotiation later, there are no surprises, that you have a nice, smooth, close. Also, if you have multiple buyers that show up for the property, then it gives the seller the ability to negotiate harder to play those buyers against each other and oftentimes those buyers will push even further.
So, a pricing strategy can be difficult to do because it really does depend on each neighborhood and each price point. In higher price points, for example, price points over $5 million, oftentimes pricing low may not lead to the same result. You want to work with an agent that’s really looking at each neighborhood, what are the trends in that neighborhood? What’s going on in that moment? Because it actually changes all of the time, and then give you the pricing strategies and the pros and cons of each one and let you decide which one is going to work best for you. If you have any other questions about pricing, I’m more than happy to chat with you. Feel free to reach out. Thanks.