Sell in a cooling market with confidence - Fine-tune Pricing - Series 3 of 10

 


Fine-tune Pricing


In a free market, market determines the price of any product. We may want to feel that we are in control and capable to determine the pricing of our product as a feel good factor, but in reality, it is always the market that shapes this sentiment.

Market feedback is the key to achieving realistic pricing for your home. The progress for the marketing campaign provides key metrics to determine when pricing adjustment may be required. 

For example, the weekly outcome of the marketing campaign should provide enough data to evaluate the strategy and pricing for the sale of the house. Incase no offers have been received towards halfway mark of the marketing campaign, the fine-tuning of the pricing should be considered.

It is of high importance that assumptions be avoided at all costs, therefore, it is the professional responsibility of the real estate agent to exercise this option with due diligence and support the change in pricing with evidence.

Assuming that price correction is required before running the marketing campaign is a risky proposition. 
Firstly, it will put the property at risk of being sold at lower than the market price, 
secondly, the real estate agent may inadvertently contribute to underquoting (provided the initial advertised price is lower than the feedback from the marketing campaign), and 
last but not the least, the adjusted pricing should always be updated on all marketing material and media to keep potential buyers informed about the change as this would potentially protect real estate agents from underquoting the property.

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