Home > Home Selling > Price Positioning Your Frisco TX Home For The Greatest Success of a Sale

Pricing position is crucial in the success of your home sale in the greater Frisco TX areas. More often than not, home sellers price themselves out of a possible contract because they put their seller's hat on; not the buyer's.

Most home sellers in greater Frisco TX areas price their homes with NEGOTIATION ROOM. This is the number ONE killer of inviting an offer.

Negotiation room can vary significantly for many home sellers. How much room is ENOUGH?

Assuming the Seller knows and acknowledges what his/her home could sell for, let's just use $295K as an example:

(1) Many home sellers may price it to $309K.
By the time, the Buyer may offer a $295K, we are home free.

(2) Some ambitious sellers may price it to $315K, or even $325K.
These are homes that may typically sit on the market for a while. These sellers typically do not understand how this pricing strategy hurts them, rather than help them. "Let's just try......" is what sellers usually say.

(3) A handful may price it at $299K.
Although some sellers may be fearful that they receive an offer for $280K to start, they may still take the risks.

(4) One who needs it sold today will price it at $295K.

(5) Most sellers do not use this strategy. Some lenders do. They price it at $279K with anticipation that it may get a bidding war with buyers.
I've seen this done successfully every once a while. Eventually, the selling price is close to the fair market value of the home.

Price positioning depends on many factors. But the (2) most important are:

(1) What's currently available for sale on the market NOW?
(2) How motivated is the seller in selling?
If you must sell, you make sure you price to sell and not to decorate the inventory as if it was a product in on a store shelf. If you must sell yesterday, you must price it very attractively. If you are selling to test the market (to see how much you can get for your home), you are only bringing inconvenience to you and your family.

Most sellers make the mistake of looking from their viewpoint:

How much they paid for the house, how much they need to net out of this transaction, how much is the selling costs, how much am I able to take to the next transaction?

I'm so sorry, Mr. & Mrs. Sellers: All of that do not really matter. What matters is the current market conditions in greater Frisco TX and what your house can sell for NOW.

There are many articles out there to guide home sellers on how to figure out the fair market value for the homes. But not many educate the sellers on PRICE POSITIONING once you know how much your house can sell for.

Each neighborhood in greater Frisco TX is different. But the strategy is still the same.

Let's use a Fair Market Value of $160K.

(1) You can price it at $175K. But when buyers view homes within the $150 - $175K range, your house is at the top of their range. But the features/ quality sure do not reflect that of a $175K home. (Hint: They see more than 1 home prior to purchase. They compare and they want the best VALUE for their MONEY.)

(2) You can price it at $169K. And again, they (the Buyers) price compare with others, you are still just about $10K higher.

(3) You can price it for $160K and bingo. You do look like you have the best VALUE for the money. Then, they see that you are just fresh on the market. All the more they are afraid that other buyers may notice the great DEAL too. They quickly submit an offer. You sealed your deal.

It does not mean you may not see a lower initial offer, but when a buyer likes your property enough to submit an offer, it means they like the property to purchase it. They are willing to pay a price very close to asking price. I have yet to see a transaction fail if the seller asked for a fair market price and the buyer walks. Those that do are bottom feeders anyway, why would you want to deal with them? There are more buyers out there who would pay a fair price than bottom feeders who are scavenging for a steal. Sure, any buyers want a deal but eventually they come to reality that they have to pay for what they want. You leave out those buyers who are unrealistic.

You do not have the opportunity to sell your home if you do not price it correctly to get an offer to negotiate. The opportunity only comes when you get it right.

Look through the eyes of the Buyers. Forget that you are the Seller of your home just for a moment.

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