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Ready Set Sold with Bryan Vogt #11-03: How pricing can affect the sale in a huge way

August 5, 2017


Bryan Vogt: Welcome back everyone. This is Bryan Vogt. You are listening to Ready, Set, Sold, the 12 Proven Steps to get your house sold for top dollar and a fast sale. Hey, as I mentioned last segment, like us on Facebook. We’ve got a great Facebook page we’d like to have likes with. There’s also the ability, probably soon, that you can listen to the show. So there’s different ways that we’re trying to get this information out, because ultimately, that’s what we’re doing. We’re trying to get information out to you, the sellers, so that you can make your decisions that what’s best for you.
I left you with the pricing strategy of these two houses. And just to kind of recap, if you didn’t catch the first segments, we have two houses in O’Fallon, they match up very well. The same builder, same just about everything. It was really the same layouts. Everything was the same, but one sold in two weeks for top dollar and they were completely amazed, and the other one? It lagged. It took about three months and they had to make price adjustments and there was things that they ran into, and it was very, very frustrating.
They both sold. That’s the good news. But in totally different experiences and different price points. So what did the many do that made the pricing so important? Well, the many did what many successful sellers do. They looked at the location. Their agent talked to them about location, what actually had sold. Understanding that yes, square footage is a factor, there are other factors out there. School district is a factor, probably not as big as what people think, but it can be a factor. There are other factors, but your location and your location, location. There’s a reason why they say that and that’s because that’s gonna give you your best idea of what your house is worth on the open market.
So they took, just so you understand, they took the high top dollar, they went with the range, but they took the high top dollar. They thought they had a great house, the things that they had done. They had gotten to enjoy the house, because some of the things they had done, they had done years in advance because they kind of knew that they was looking in the direction of moving. So they took that approach.
The other house that had some issues just said what the heck. Just said, you know what? I know the location, but you know what? Why don’t I just shoot for the moon and let’s just go for it? And that’s okay, it is your house and your agent should be able to accept that, too, and so, do the same marketing and push the house just as much as if you had this range or whatever you price you do, too.
But the problem was is there was really nothing behind that except what the heck? You can always go higher, you can’t go lower. And that is true. And that is true, and yes, on rare occasions, you can have success that way. You can sell a house that way. However, percentages work in your favor.
And again, it depends on how long you stay with that number. Every house, every situation is unique. And in this situation, they took a much higher approach, saying what the heck, what if we do get it? Even though the percentages weren’t in their favor. Well, unfortunately they didn’t get it. And that also became an effect to it, the pricing points for both two houses was one was much, much higher.
When I say higher, it just depends, you might be dealing with percentages there. There is some wiggle room, naturally, even with ranges, top dollar and lower top dollar. But there’s also a limit to that, and they kind of stretched the limit, just to see what would happen. Well, this one sold, 30 days later, they’re doing, the one who went for the many and priced it for location is doing fantastic and they’re in their new home and they’re happy. The other one is still struggling, they had to make a price adjustment.
And they made a price adjustment, but they didn’t take too much of a price adjustment, because they were still hanging out there that maybe somebody would take it, and that’s okay. But they didn’t. And they made a very incremental price change. Understanding is that price changes are good, okay, and any price change is good because it goes through the system, the agent’s able to market again. But many times, by just taking a small price reduction, it doesn’t have the effect. It just doesn’t, and I think this situation was a couple of thousand dollars. Now, a couple thousand dollars is important to everyone.
But the trouble was is that it didn’t get enough to move the buyers in to not only showing the house or looking at the house but putting an offer on it. So that pricing strategy, talking with your agent, going for the many, understanding that you’re still going for top dollar, you still want the most amount of money you possibly can, and understanding that there’s a range.
And so they took the high top dollar, the one that was going for the many, because they knew they had done the work. They had done the things already, and some of these things they had done years in advance. Because they knew that they were kind of moving along, and that’s one of the reasons for the book. Again, you might be in that situation, well, in a couple of years things are gonna be changing, maybe retirement, maybe you’re just looking to upgrade. Whatever those reasons are, maybe the house is just kind of shrinking as your family is growing. Whatever those reasons, you want to go ahead and get the book, ReadySetSold.org, not .com, is where you want to go, and get the book.
Next segment, we’re going to be talking about bathrooms and kitchens and the difference between these two houses and their experience. And don’t forget about the $5000 Tip of the Week at the end of the show for sellers are either making or saving $5000 in the sale of their house.

This is Bryan Vogt, you’re listening to Ready Set Sold. We’ll see you in a few.

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