Is your property priced too low?…EDITED

 OK folks, as most of you know, I consider myself an expert when it comes to pricing. I study my market daily and have been selling property in Poinciana Fl for 13 years. I've seen Poinciana grow from a population of 6,000 to almost 67,000. During this time I have sold hundreds of properties and there are actually houses in Poinciana that I've sold 3 and 4 times over the years. So when it comes to Real Estate and pricing in Poinciana Fl, I am an expert.

Anyway, Bob Mitchell wrote a post, earlier today, talking about pricing. It's a good post so take a minute and pay him a visit, I'll wait. OK are you back? My comment on his post sparked this post. I love it when that happens.

My comment to him was that it's ALWAYS about the price. And I believe that completely. Location, property condition and market conditions can all be overcome by pricing. The key is in finding the right price or the "sweet spot" as I call it.

BUT, it's not always about being priced too high. Sometimes it's because it's priced too LOW!! Yep, that's right, too low. Let me give you a real life example.

I spent most of last week evaluating my listings to see why they weren't getting showings. One was a 4 bedroom home that we had just reduced about two weeks ago to a list price of $169,000 from $179,000. At $179,000 it was the 3rd best priced home of similar properties and was getting showings but no offers. It's a bank owned property and they want it moved, so we reduced it. Well, lo and behold, no more showings. Nothing, zilch, nada.

REALTORS® were calling me on a similar property priced at $185,000 but not this one priced at $169,000. So I asked them why. Well turns out they were putting a minimum price in their searches. The reason is there are 1,800 properties on the market and if they didn't limit their list price searches they would end up with too many properties to choose from. Makes sense doesn't it? So I raised the list price to $175,000 on Friday and had 4 showings over the weekend. No offers but at least they are looking again.

I also raised the price on one of my 3 bedroom homes from $149,000 to $155,000 and had the same results. So folks, know your market. If your listings aren't getting showings, make adjustments. Make sure the list price is not too low. And remember, it's ALWAYS about the price. Food for thought?

EDITED*****ADDITIONAL THOUGHT***** 

Hi all. One thing concerned me when I was doing my research and talking with REALTORS(R) last week. The majority told me they were putting in minimum prices in their searches. They said if the buyer qualified for $190,000 they would search properties between $180 and $200. Now I may be wrong but isn't this doing the buyer a disservice?

Aren't buyers really looking more for size, features, year built etc. instead of price? If that's the case wouldn't it be better to leave the minimum price out and then weed through the listings that meet their needs based on their other parameters? Why did the REALTORS(R) feel they had to maximize the purchase price? My 4 bedroom listing was a good $20,000 less than comparable properties priced in the high 180s low 190s but unfortunately the buyers didn't even get the opportunity to look at it.

If I were working with a buyer and could save them $20,000 I would be ecstatic. And I'm sure they would be as well. Maybe putting in a minimum price is just not the right way to go. What say you?

BTW, there were 12 comments prior to me adding this edit. Sorry about that but I really want to know your thoughts on this.

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