Get off the roller coaster and…
into the fast lane.
If pricing houses were an exact science, everyone would be able to price their home right the first time, get full price and move on. Unfortunately, such is not the case.
The Reason: Price Elasticity
Price what? You ask. Yes, Price elasticity. It’s an economic formula that determines how sensitive prices of ANYTHING are to demand – especially the prices of homes. The higher the price elasticity, the more sensitive consumers are to price changes.
· A very high price elasticity suggests that when the price of a product goes up, consumers will buy a great deal less of it and when the price of that good goes down, consumers will buy a great deal more.
· A very low price elasticity implies just the opposite, that changes in price have little influence on demand.
When it comes to selling homes, there is usually a very high price elasticity and a strong demand…no matter how bad the market is.
Q: TRANSLATION PLEASE?
A: the best priced deals go first.
Not so fast, just reducing the price of your home isn’t going to get it sold fast. You need to drive up demand on your home so people can see it and the price they can get the home for.
It’s really a two pronged approach – list your home at a competitive price and then use a sound market strategy to get the largest number of buyer prospects to see it.
If you’d like a FREE consultation to see how well you priced your home and some ideas on improving your market strategy, contact us at 315 671-5478 or email us at info@hodgkinsandohara.com.
Chip | 544 Towne Center, Fayetteville, NY 13066
Phone: 315 449 6685 | Fax: 315 446 5366 | info@hodgkinshomes.com