Expert Pricing Strategies for Vegas Valley Homes

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I wanted to share with our viewers and experience that I’ve noticed because I’ve

been spending a lot of time in the multiple listing service, which if you’re not familiar

with the multiple listing service- It’s where all of the homes that are for sale or

recently for sale are listed in our database. Now, one of the phenomenon I guess you

can call it, is this example of when a home starts at one price point and there’s a sad

story of it chasing the market all the way down and oftentimes never selling.

What’s going on there?

Well, a lot of people look at that and say, Oh! that’s an indicator of

what’s going on in the marketplace. It’s a horrible market to sell.

Here’s the reality- It started out with a poor pricing strategy to begin with, so well,

there are three different ways that we can price a home..

One- We can price a home out of the market.

When we price something out of the market, it is so over priced that in order to get the home into the market, we chase, chase, chase, chase, chase the market down and

that’s where you see price reduction after price reduction after price reduction.

Well, the thinking of you know flip that around that people will rationalize or

justify placing that higher price because there are like you know, there’s that

concept of horse trading where they figured well will price it up here and

someone will come in and will meet them halfway and that’ll be the price you

really want. Well, the problem with that is that you they don’t come in halfway,

they just decline reject the property right, they move on and they’ll go find

another house, and so that’s a big danger.

Now a second way that you can price a home is where we call limbo land.

Well, it’s halfway in between being overpriced and being in the market. And this is a

place where people will overprice and say, well, we just need a little bit of

negotiating room. Buyers see this. They know this. They may even come see the

house, but they know that your home is overpriced and they won’t even make

an offer and they’re on to the next . And then here’s the danger- When you do

reduce your price to get into the market range, they’ve already seen it, and

they’re like, oh, we’re on to the next. ’cause what happens is it’s too little,

too late. They’ve already seen it. They’re like, well, for that small

reduction, I’m not gonna go look at it again and I’m moving on to the next home.

But what happens is you have all these at that point to it’s difficult to make a

price reduction that’s big enough to get the markets attention. That’s right,

because then you end up doing little by little by little until you end up like

severely discounting a property oftentimes, and at that point a lot of people just

take their home off the market well, and we’re seeing that a lot right now, and so

that is the danger of overpricing or being in limbo land.

Now the third place where we work with our clients on to have a very good and

powerful pricing strategy. As we help our clients price their home in the market

and where in the market is where we determine where a buyer is willing and

able to pay a price to purchase that House. And here’s the phenomenon that

happens here quite often. It drives demand up. More buyers come see the

house and sometimes we’re getting multiple offers on that home which will get

higher than market value. This happens all the time when you go look at what’s happening in the marketplace when you see that home that is well priced.

If you were in the market to purchase when you see that home

that’s been priced in the market, everyone immediately gravitates towards it. That’s the house, that when you have the open house for people are

flocking to it. That’s when we’re getting a lot of calls on it because people

recognize that that’s good value right there. And at that point, because of the

interest, there’s this weird phenomenon that happens that people will start to

say, I want that home. That’s exactly right, and I’m willing to pay above what

they’re asking, because look at clearly everyone else is thinking that way too.

It’s almost like creating an auction like environment.

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