A real estate broker who called me after reading one of my posts was telling me about his approach to sellers when recommending a listing price. Basically, he has them agree to progressively lower prices depending upon how long the property stays on the market.
I have a somewhat similar approach.
What I do is begin by asking a question:
“How soon do you want to sell your home?”
After we dispense with the inevitable “as soon as possible” discussion, I explain that the second most important factor in determining price (after analyzing comparative sales and competition) is . . . timing.
If the seller truly is in a rush, then it is essential to set a price that will attract the most buyers in the shortest amount of time. To my mind, that means slightly underpricing the property.
If the seller wants to give the home the maximum amount of exposure in a reasonable amount of time — say, a month, after which showings invariably drop off — we’ll make the best guess as to the true market value and act accordingly.
Rocket science, it isn’t.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022