Today John shows you how pricing your home right from the beginning makes you more money, and will also show how pricing your home right will sell it faster.

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Transcript

Hey, guys.  John Jones with another edition of Tuesday Morning Coffee.  Today, we’re going to talk about something that’s near and dear to my heart.  It’s called pricing the home right.  And I’m going to prove to you today why pricing the home right on the front end will sell your home in quicker time, but also most importantly make you more money.  For years and years, we said this to our clients or I said this to my clients, “Guys, if we can price it right on the front end, we’re actually going to make you more money.”

 

But I had a hard time proving it because I didn’t really have any great visual to show my clients.  Well, in the last few months, I’ve gotten involved with a data system that is able to go in and dissect MLS.  So it’s given me some valuable stuff, and you’re going to see it at the bottom on the screen here in just a second.  But just in the last 365 days in Rutherford County, between 150,000 and 250,000, there’s been 922 properties that have sold and closed.  Out of the 922, 516 of them never had to have a price change.  Not one.

 

Those properties sold in the average of 56 days.  Days on the market: 56.  The average square footage price was $85 per square foot.  Now let’s compare that to the 406 properties that had to have a price change.  Well, the interesting thing is if they had to have one price change, they actually averaged two price changes.  Their days on the market compared to the ones without a price change went to 129 days.  So more than double the ones without a price change.

 

But most interesting, the price per square foot was $3 less, $82 per square foot.  I think there’s a couple reasons why.  One is right now we’re still in a declining market, so the longer a home stays on the market and has to sell, the lower the price is going to be.  Another big factor is the longer a home stays on the market, it’s going to receive fewer showings and it’s going to solicit lower offers.  And that’s the type of offers you end up dealing with.

 

So therefore, in my opinion, you end up selling for less.  Not in my opinion.  I’ve got factual data to prove it.  So in that particular scenario, $3 a foot less.  The average square footage in that range was 2,300 square feet.  So guys, that is 3 x 2,300.  That is like $6,900 difference between pricing it right or pricing it wrong.  I hope this helps you.  Call us if you need us, 867-3020.