Post on 19-Jun-2015
RE/MAX Romania 2014
Pricing
RE/MAX Romania 2014
The importance of pricing• Listing properties•Marketing properties• Negotiations & closings
RE/MAX Romania 2014Pricing tips
• Extremely sensitive issue• Seller must be ready to hear• The pre-arranged price discussion
technique• The dangers of over-pricing• The difference between asking price &
closing price
RE/MAX Romania 2014Structure of a CMA
• Recently sold – similar properties• Currently for sale – similar properties• Currently for sale (more than 4 months)
– similar properties• Recently sold – similar to asking price• Recommended asking price
RE/MAX Romania 2014
0 1 2 3 4 5 6 70
5
10
15
20
25
Property Depreciation
RE/MAX Romania 2014
0 1 2 3 4 5 6 70
5
10
15
20
25
Property Depreciation
Strong deal
RE/MAX Romania 2014
0 1 2 3 4 5 6 70
5
10
15
20
25
Property Depreciation
Weak deal
RE/MAX Romania 2014The marketing pyramid
• Attractive pricing = more buyers•More buyers = competition • Competition = max price•Wrong pricing = detrimental to price! • Goal: max closing price, not max asking
price
RE/MAX Romania 2014
10% +
3-6%
6-10%
Right Price
RE/MAX Romania 201410% +
6-10%
3-6%
BINGO!
RE/MAX Romania 2014
The pricing trinity• Asking price is a marketing tool to
get max closing price• Competition is critical• The recommended asking price:
0-3% above average asking price
RE/MAX Romania 2014
The elevator effect• As one property, wrongly priced,
depreciates, another property, smartly priced, rises via competition!
RE/MAX Romania 2014
Price reductions• Always face-to-face• Come bearing facts & proof• Tread carefully…• Advertise your own effort
RE/MAX Romania 2014
The T.I.P.Pfor
Success
RE/MAX Romania 2014
TotalCommitment
RE/MAX Romania 2014
RE/MAX Romania 2014
RE/MAX Romania 2014
InternalMotivation
RE/MAX Romania 2014
RE/MAX Romania 2014
RE/MAX Romania 2014
ProfessionalPride
RE/MAX Romania 2014
RE/MAX Romania 2014
RE/MAX Romania 2014
PeopleBusiness
RE/MAX Romania 2014
RE/MAX Romania 2014
RE/MAX Romania 2014
Final thoughts• Stay in touch• Keep learning & practicing• Have fun!• Go out and succeed!!