Set Your Home Up For Success With Power Pricing !

The inventory has been much lower than expected and going into the full spring season we are slowly starting to see homes come back onto the market.  Many of these homes are taking advantage of a strategy that Coldwell Banker Residential has created an entire marketing plan for called "Power Pricing".  This blog will discuss how you go about find the right price for this strategy and what the benefits are ! 

Creating Your "Power Price" 

• As with any sale you will of course be provided a complete CMA for your home.  You will receive the range where you home falls based on the comparable homes selling price.  This will normally be a $10,000 - $15,000 range of numbers depending on the area sometimes it can be a bit more on higher end homes.  
• You will also look at the homes that are on the market but with a bit more detail.  Power pricing  is very much about being better than your competition.  In a perfect market all the homes will be priced within 1% - 2% of one another in which case power pricing would be from 3% - 5% under their values.  In a case where there is a larger range of pricing than looking at detailed views of each, and putting your home in price range where you are able to see the value in your home vs theirs is really where you want your home to be priced, but never where your home has less value.  

Creating Your Power Price Listing - The power pricing strategy is not all about the price, you can price it incredibly aggressive but if it is hard to show, or does not have a complete listing you will not see the results that it can offer. 

•  Make sure your listing is full with complete photos of all the rooms in the home, also include information in the description that buyers look for.  Ex: Taxes W/Star, Upgrades Not Visible Like Sprinkler Systems, Age Of Appliances & Structures 
• Pictures, pictures & more pictures ! This is extremely important, you want to show every room that is in your home.  Any room left out can make a buyer think "that's why the price is so low".  Make sure that the pictures are not only there but are of good quality ! Take the time to de-clutter and ask your Realtor if they have some staging tips that they think might enhance your home.  
• Your home is going to begin to have a lot of "traffic" through those doors which can make homeowners apprehensive.  The traffic is the entire point to "power pricing" if your not able to accommodate the showings than having your Realtor accompany with a key, or convenient open houses are key ! 

Put Your Home & Town On Display ! 

• When Coldwell Banker created the power pricing strategy we wanted to make sure that it was obvious to the buyers.  Additional advertising is given to these listings to make sure they got the exposure.  Also making sure your listing is branded with not only the power pricing information, but your realtors information is another key aspect, your realtors job is to make sure those buyers get in to see that home  ! 
• You want to make the buyers viewing memorable, and in most cases the homes large amount of showings will often have potential buyers meeting in the driveway but you must make sure that you make it more than that.  Making sure that they are getting all the information they might need/want gets to them quickly will make them comfortable coming in with a higher price, and quickly ! This includes information about the school district, transportation, or even day cares in the area.  For this I have created a buyers packet which includes all the information in a town newsletter.  

The benefits of power pricing are all in the numbers these home almost always sell for full price, if not above within 30 - 45 days.  The most important advice I give to my homeowners that are deciding to use this method is that they can always say no ! Their inevitably will be buyers that are not up to date on the area or are not using a Realtor, these buyers might still come in lower than the asking price.  In any real estate negotiation you have the right to simply say no.  Never let the fear of low offers scare you off from aggressively marketing your home to the serious buyers who want your home !