Real estate sales plan
Many property sellers assume that They determine the price of their property, often based on their need of money, family or fortuneteller advice. That is not quite right.
The market or better said, the buyers, determine the price to be paid for the particular property.
There are three most popular strategies when selling the property:
1. Start with the highest price and low down based on the demand.
Normally such properties take longer to be sold and the final selling price is way lower than the initially requested.
2. Set up a fair market price and sell fast enough.
It's not always possible to guess from the first attempt the "fair market price" that the buyers want to pay for this property. Once found such properties are sold rather fast. Disadvantage is that the seller will never know what was the highest price he could get for his property.
3. Start low, attract attention, sell to the best offer - so-called Auctions.
The sale strategy Auction includes several components:
- the seller will determine the credentials important for him in order to sell the property to this particulat buyer: it can be highest offer, fast financing, etc;
- the property price anounced must be lower comparing to similar properties in this location. It allows attract buyers' attention;
- the potential buyers will be notified that the property will be sold to the "best offer", i.e. offer that the seller will choose according to his credentials.
The advantages of an Auction versa two other strategies are:
- it's easy to see the market's reaction to the set up price: no or few interested buyers - the price is too high;
- it's saving time as all the potential buyers come to see the property and give their offers simultaniously;
- experience shows that this strategy brings the highest percentage of the properties sold at the much higher price than requested within pretty short amount of time.
And the best is that the seller is not obliged to choose from the current offers.