The Cost of Pricing: How Technology, Psychology and Timing Impact Listing Value

by Jennifer Morrell

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As an agent at the top of your game, you’ve obtained the listing. Now, the fun begins – pricing the property. Doing so in a manner that leaves your seller feeling satisfied – and you with a little peace of mind that the price makes sense – can be tricky. Your seller has almost certainly done his own research before ever calling you or sending an email. And, while you don’t want to poke holes in his research methods, your knowledge should prevail.

Even with a recovering economy, buyers are scarred, says Coldwell Banker’s Marc Castillo, who sells from Downtown Atlanta into Buckhead, and north into Alpharetta and John’s Creek. “The buyer is still very cautious and hasn’t forgotten the sins of the past seven years,” he says, adding that buyers still exercise caution toward overpaying or not receiving full value for a purchase.

The basic considerations of listing a property remain unchanged. Analyzation of both absorption rates and the current market are due diligence, but a property has to be priced more competitively than homes that have been languishing for more than 60 days, says Castillo: “Using a losing horse as your benchmark is not the best strategy.”