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PRICING IS BOTH AN ART AND A SCIENCE

SETTING THE RIGHT PRICE .....(CORRECT MARKET POSITION).....PRICING YOUR PROPERTY ...... OVER PRICED - NO TRAFFIC - NO OFFERS ...... MARKET PRICED - SOME TRAFFIC - ONE OFFER...... ACTION PRICED - HEAVY TRAFFIC - MANY OFFERS …..THE BIGGEST MISTAKE SELLERS MAKE, IS PRICING BASED ON WHAT’S FOR SALE, NOT WHAT’S SOLD. CONSUMERS CAN GET EXCELLENT INFORMATION ABOUT WHAT COMPARABLE PROPERTIES HAVE SOLD FOR AND WHAT COMPETITIVE PROPERTIES ARE SELLING FOR. YOU PRICE ACCORDING TO WHAT HAS SOLD. THAT’S THE MARKET PRICE. THE ONLY REASON YOU NEED TO LOOK AT THE UNSOLD PROPERTIES IS TO FIGURE OUT WHAT YOU NEED TO DO TO BEAT THE COMPETITION. FINALLY, EVEN IF SELLERS AVOID THE BIG MISTAKES WHEN THEY’RE PRICING THEIR HOME, THEY CAN STILL MAKE A MISTAKE AFTERWARD - NAMELY, THEY SET IT AND FORGET IT. EVEN IN THE BEST OF CIRCUMSTANCES, THE INITIAL HOME PRICE IS A GUESS. PRICING IS BOTH AN ART AND A SCIENCE, AND YOU NEVER QUITE KNOW EXACTLY HOW THE MARKET IS GOING TO REACT WHEN YOU LIST A HOME. INDEED, FROM A PURE ECONOMICS 101 PERSPECTIVE, IT ALMOST DOESN’T MATTER WHERE SELLERS INITIALLY PRICE A HOME BECAUSE THE MARKET IS GOING TO CORRECT THEM. IF THEY PRICE IT TOO HIGH, THE HOME WILL LANGUISH ON THE MARKET AS BUYERS TAKE A PASS UNTIL THEY REDUCE IT.

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HOME DEMAND INDEX - TALBOT COUNTY - 2021 FORWARD

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THE BIGGEST MISTAKE SELLERS MAKE IS PRICING BASED ON WHAT’S FOR SALE, NOT WHAT’S SOLD.

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THE DIFFERENCES BETWEEN MARKET PRICE AND MARKET VALUE IN REAL ESTATE ..................................................................................MARKET PRICE: IS WHAT A WILLING, READY AND QUALIFIED BUYER WILL PAY FOR A PROPERTY AND WHAT THE SELLER WILL ACCEPT FOR IT. THE TRANSACTION THAT TAKES PLACE DETERMINES MARKET PRICE. PRICE IS DETERMINED BY LOCAL SUPPLY AND DEMAND; THE PROPERTY’S CONDITION AND WHAT OTHER SIMILAR PROPERTIES HAVE SOLD FOR WITHOUT ADDING IN THE VALUE COMPONENT ..................................................................................... MARKET VALUE: IS AN OPINION OF WHAT A PROPERTY WOULD SELL FOR IN A COMPETITIVE MARKET BASED ON THE FEATURES AND BENEFITS OF THAT PROPERTY (THE VALUE), THE OVERALL REAL ESTATE MARKET, SUPPLY AND DEMAND, AND WHAT OTHER SIMILAR PROPERTIES HAVE SOLD FOR IN THE SAME CONDITION ..................................................................................... THE MAJOR DIFFERENCE BETWEEN MARKET VALUE AND MARKET PRICE: IS THAT THE MARKET VALUE, IN THE EYES OF THE SELLER, MIGHT BE MUCH MORE THAN WHAT A BUYER WILL PAY FOR THE PROPERTY OR ITS TRUE MARKET PRICE. VALUE CAN CREATE DEMAND, WHICH CAN INFLUENCE PRICE. BUT, WITHOUT THE DEMAND FUNCTION, VALUE ALONE CANNOT INFLUENCE PRICE. “ON THE RESALE MARKET, IT’S CALLED ‘ASPIRATIONAL PRICING.’ IT’S THIS IDEA THAT YOU ARE HOPING YOU CAN GET YOUR PRICE AND ANYTHING LESS THAN THAT YOU AREN’T GOING TO SELL”. THE PROBLEM IS THE PRICES SOUGHT DON’T REFLECT ACTUAL VALUES ..................................................................................... VALUE IS TRULY IN THE EYE OF THE BEHOLDER: IN MOST CASES MARKET PRICE WILL TRUMP MARKET VALUE IN A BUYER’S MARKET. PRICE LEVELS THE PLAYING FIELD. EVERY PROPERTY EVENTUALLY SELLS FOR A MARKET PRICE. FACTORS SUCH AS SALES TECHNIQUES, MARKETING, INCREASED EXPOSURE CAN ADD MORE VALUE AND INCREASE DEMAND, WHICH WILL CAUSE A HIGHER MARKET PRICE ..................................................................................... MARKETING IS A FUNCTION OF PRICE: GREAT MARKETING WITH THE RIGHT MESSAGE WILL DRIVE MORE TRAFFIC TO THE PROPERTY. IN THE END THE HOME HAS TO BE WITHIN A BUYER’S BUDGET AND PROVIDE VALUE, AND THE HOME DOES HAVE TO “SELL ITSELF.” SO, IS PRICE THE ONLY REASON THAT HOMES SELL? PRICE COMBINED WITH EFFECTIVE MARKETING IS THE LARGEST MOTIVATOR TO GET A HOME SOLD IN ANY MARKET. IN THE END A BUYER WILL PAY ONLY WHAT THE PROPERTY IS WORTH AND THE BUYER HAS THE CHECKBOOK ..................................................................................... ACCELERATED MARKET STRATEGY: AN ALTERNATIVE CHOICE TO BUYING AND SELLING REAL ESTATE – SEALED BID OFFERING WITH (OR WITHOUT) RESERVE. TOTALLY CONFIDENTIAL. OUR PRIMARY GOAL IS TO SECURE THE HIGHEST PURCHASE VALUE FOR OUR CLIENT’S PROPERTIES BY DEVELOPING HIGHLY EFFECTIVE MARKETING COMMUNICATIONS THAT ENGAGE POTENTIAL BUYERS TO TAKE ACTION.

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JONATHAN T. GINN - 410 310 4966 - GINN@GOEASTON.NET - LIFESTYLE, WATER, LAND AND ESTATE AGENT - SPECIALIZING IN COASTAL LIVING ON MARYLAND'S EASTERN SHORE. PRACTICAL AND EXPERIENCED DECISION SUPPORT - STAYING ABREAST OF ANCILLARY MARKET INFLUENCES IN EVER-CHANGING ECONOMIC CONDITIONS. FINDING A TRUSTED PROFESSIONAL WHO NOT ONLY UNDERSTANDS THE NUMBERS BUT ALSO THE DIFFERENCES IN VALUE FROM ONE AREA TO ANOTHER IS A CRITICAL PART OF MAKING INFORMED DECISIONS. COASTAL LIFESTYLE ON THE EASTERN SHORE WITH FOCUS ON TALBOT COUNTY - EASTON, ST. MICHAELS, OXFORD, TILGHMAN, TRAPPE - FINDING OPPORTUNITIES - INVEST AND ENJOY! - 1% FOR THE PLANET. MAKE YOUR MOVE WITH JON GINN...... WATERFRONT: STUNNING ESTATES...... FARMS: STABILITY IN UNSTABLE TIMES...... RESIDENTIAL: FIND YOUR DREAM HOME..... LIFESTYLE: NOT JUST ABOUT PHYSICAL REAL ESTATE, IT'S ABOUT EVERYTHING ELSE ONE CANNOT DEFINE.....PRIVACY: "PRIVACY SO VERY IMPORTANT! PRIVACY IS THE ONE THING EVERYONE HAS GIVEN AWAY ON SOCIAL MEDIA, AND THE ONE THING THE INTERNET HAS TAKEN AWAY." LOCATION: THIS PART OF THE COUNTRY IS COMPRISED OF SEVERAL ECLECTIC SMALL TOWNS, PRISTINE NATURAL BEAUTY, AND UNPARALLELED CHARM...... TALBOT COUNTY: NO BETTER PLACE TO MAKE MEMORIES.......

THE IMPORTANCE OF FIRST IMPRESSIONS OF A HOME!!! FIRST IMPRESSIONS COUNT IN EVERYDAY LIFE, AND EVEN MORE SO IN REAL ESTATE. WITH JUST SEVEN SECONDS TO TRY AND SWAY A POTENTIAL CLIENT OR EVEN FORM YOUR OWN OPINION, THE HUMAN MIND FIGURES OUT WHAT IT WANTS FAIRLY QUICKLY. WHETHER YOU’RE BUYING OR SELLING, YOU’LL UNDOUBTEDLY BE LOOKING TO IMPRESS OR BE IMPRESSED DURING THE REAL ESTATE TRANSACTION. BY UNDERSTANDING THE IMPORTANCE OF A FIRST IMPRESSION, HOWEVER, YOU’LL BE ABLE TO UNDERSTAND EXACTLY WHAT TO DO TO INCREASE THE IMPRESSION YOU MAKE ON BUYERS OR UNDERSTAND WHAT TO LOOK FOR WHEN FORMING YOUR OWN OPINION AS A BUYER.

DO NOT OVERPRICE YOUR PROPERTY - BUYERS ARE EXTREMELY SAVY AND IT IS CRUCIAL NOT TO OVERPRICE!

NAVIGATING A 1031 EXCHANGE - CLICK HERE FOR ARTICLE

PRICING A LUXURY HOME? #1 - THE IDEAL LOCATION #2 - LARGER FLOOR PLANS #3 - PREMIUM MATERIALS #4 - EXTERIOR ELEGANCE #5 - EXCEPTIONAL QUALITY #6 - SPA - LIKE BATHROOMS # 7 - PRICING AND VALUE WITH ALL THE TOYS AND AMENITIES. BUYERS OR SELLERS MARKET.

PRICING TO OFFER FOR SALE? OR PRICING TO SELL? ....WE USUALLY DO FOUR WEEKS ON MARKET, AND AFTER THAT, WE’RE GOING TO HAVE A PRETTY GOOD IDEA OF WHERE WE NEED TO BE PRICE-WISE. WE’RE GOING TO HAVE GOOD DATA POINTS SUCH AS HOW MANY INQUIRIES DID WE GET, HOW MANY SHOWINGS, AND THE FEEDBACK FROM THOSE SHOWINGS THAT’S GOING TO TELL US WHAT WE NEED TO DO. TYPICALLY, THAT’S A PRICE ADJUSTMENT, BUT SOMETIMES IT’S NOT.

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CLICK ON PICTURE FOR ARTICLE - WHEN TO CONSIDER GIVING YOUR LISTED HOME A BREATHER FROM THE PROPERTY MARKET
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