Real Estate Pricing Strategy Get Top Dollar For Your Property

September 23, 2021

Assumed value means nothing in real estate. As a leading real estate broker in Western Colorado, here's how I strategically price properties for top $

Every seller wants to get the most money possible for their property, but assumed value means nothing in real estate. Market conditions, local inventory, property type, and buyer personas play pivotal roles in developing a real estate pricing strategy.

As a real estate broker in Western Colorado, I've seen the market fluctuate, had the privilege of helping sellers make more money than they expected, and also had to level expectations when I know a seller wants more money than their property is worth. Before you sell your property, understand these five elements that influence your pricing strategy.

1. Price Your Property Strategically and Aggressively

Strategically pricing your home is the most critical factor influencing how many offers you receive, how quickly you close, and, ultimately, how much money you make. However, a higher listing price doesn't always equal a higher selling price. If you price your home too high, you risk not receiving any offers at all.

Conducting a competitive market analysis will help you find the perfect price that attracts buyers and offers while maximizing profit. This tool looks at the sales prices of similar properties in your area and uses these market trends to determine the best price for yours.

2. Use Price Points

Another aspect of a strategic pricing strategy involves putting yourself in the buyer's shoes to understand how they shop for properties. When buyers walk into a real estate office, they usually provide the buyer's agent with a $5,000 to $10,000 price range like "homes between $224,900 and $229,900."

To widen your potential buyer pool, consider pricing your home near one of these natural ranges. If you list your property at the high end of this natural range, say $229,900, you will only reach buyers whose budgets fall at the high end of this price range. However, pricing your property at $224,900 also puts it into the lower price bracket doubling your potential exposure.

3. Get a Pre-Appraisal

As a seller, you can get a pre-appraisal of your property's value before the buyer makes an offer. While buyers will order an official appraisal after they make an offer to ensure an accurate price, getting it done beforehand gives buyers more confidence in the property value and offer.

4. Get a Pre-Inspection

Just as getting a pre-appraisal gives buyers confidence about the property value, getting a pre-inspection validates the property's condition. Waiting for the buyer to order a home inspection after making an offer opens up both parties to unpleasant surprises – costly repairs, damage that affects the property value, or even makes the buyer back out of the deal.

5. Develop a Strong Real Estate Marketing Strategy

Hiring a listing broker with a strong sense of real estate marketing can make or break your listing. Your broker should understand how to identify your target buyer and effectively get your property in front of them.

For instance, in Western Colorado, I primarily deal with lifestyle properties like hunting properties, farms and ranches, cabins, and commercial properties. Much of the time with these properties, the buyer is out-of-state and looking for an investment. Therefore, my real estate marketing strategy uses a combination of SEO, blogging, social media, virtual property presentation, and national advertising, which results in exposure to over 3 million potential buyers every month. 

You can learn more about optimizing listings for search rankings in my blog post, "How We Win The Internet."

You Make Money When You Buy

An educated seller never walks into a real estate office and says, "I have to sell my property for at least $123,456." That's because an educated seller knows that pricing a property doesn't consider personal financial needs.

If you strategically invested, improved your property, and chose to sell during prime market conditions, you will make a profit. So, before you list, make sure you know how your listing broker will strategically set the price.