3 Ps for Selling

Although I did not study business at school, I have heard that there is a common set of 3 Ps for marketing. I'm not sure what they are, but I have my own series of 3 Ps for selling a home. I share these with prospective seller clients when discussing their home sale, and today, with you.

Preparation
When working with seller clients in preparing a home for sale prior to putting it on the market, my goal is to focus on those activities which address minor yet obvious repairs and which create the impression of a home that is clean, tidy, homey, safe, and well-maintained.

Proper preparation will be greeted positively by buyers when they see the home.

Presentation
In my approach, presentation means marketing and other outreach activities that aim to reach the most likely buyer for the specific property. Preparation can involve staging (light rearrangement of furniture and personal property, bringing in furniture and art to a vacant listing, or even removing items and excessive decoration or personally identifiable items), advertising, planning a welcoming and convenient open house, completing the most thorough and descriptive listing in the multiple listing service as possible, and having readily available at the house some information useful to buyers and their agents.

This last item in my best practices is to have a binder at the house with neighborhood details (recreation, shopping, mass transit, commuter routes, and entertainment opportunities), a paper copy of the disclosure package, floor plans, a list of updates with dates (even paint colors if available), any conveying warranties and service agreements, and even requests for potential offers such as submission guidelines.

Proper presentation means your listing will reach as many qualified buyers and their agents and entice them to add this house to their tour list or open house schedule.

Price
I typically begin price discussions with seller clients by suggesting to set the initial asking price at or very near the market value as determined by a detailed comparative market analysis (CMA) at the time of listing. For pricing a house, we look at the recent sales as well as the competitive houses on the market currently, as those will be the ones that the most likely buyer will see during their home search, too. Regardless of the state of the market (buyer's market, seller's market, or neutral), I recommend sellers offer the house at a price at which buyers and their agents will see value and want to write an offer.

Proper price will give buyers the incentive to put an offer together that they believe will result in a ratified contract.

These three Ps allow for focus at the time of sale and a simplified approach to conversations with seller clients.

QOTD: Price

Another Quote of the Day from my daughter, Lucy, age 14.

Mom, I've decided that the most important price for a house is the first one.

Having a mother as a Realtor rubs off on a kid, I guess. We had been driving home from an open house; I bring one of my daughters along if I'm previewing properties or just staying on top of the market and I want some company. The house we had just seen had had a price reduction and she went on to say how, once the seller lowers the price, then buyers think they have even more chance to negotiate on price. She is a freshman in high school. She understands market conditions and negotiating position.

In a rising market with conditions more favorable to a seller (based on housing supply, interest rates, and other economic conditions), for the right property, "testing the waters" with a leading edge price might be a winning strategy. However, if minimum time on market, optimal contractual terms, and potential competition for your property are key success factors in the sale of your home, there are other "at market" or conservative pricing strategies to discuss with your real estate adviser and agent.

Let me help you match your goals with the right pricing, preparation, and promotion strategies for the sale of your house.