Setting the price correctly from the start has become crucial.
The National Association of Realtors (NAR®) and local market statistics have confirmed an interesting trend… Homes that have price reductions take 3x longer to sell, and average an 86% list price to sales price ratio.
WRONG PRICE = LONGER MARKET TIME
LONGER MARKET TIME = LESS MONEY IN THE SELLERS’ POCKET
Strategic Pricing Specialist by Jo Mangum. Approved for 4 hours of NCREC continuing education credit.
Setting the price correctly in the beginning has become crucial.
It is critical that an agent prevent the seller from shortcutting the pricing process by jumping to a pricing decision, thereby making the biggest and most costly mistake a seller can make. Because most sellers are fixated on the price, they want to fast-forward to it and they expect the agent to tell them immediately what their house is worth.
Most sellers do not realize that pricing is not a number, but rather a STRATEGY.
They are not aware that there are numerous variables that affect the pricing strategy such as knowing how real estate agents work, understanding the market trends and valuing the process of “how buyers buy”.
This tendency to jump ahead to pricing is just human nature, so real estate professionals must acknowledge this tendency and work with their clients to stay on the path to accurate pricing. The agent’s job is to slow the seller down enough to get them to think this through and look at pricing from a different perspective.
Here’s an example. You purchase a new product that says “minimum assembly required”. You take it home and excitedly open the box and begin sorting the pieces across the floor. You skim the directions and see a diagram with various “A”, “B” and “C” labels, all interconnected. You think to yourself, “this looks pretty simple!” You eagerly start to put the pieces together and begin to see some progress as your new product comes together. At some point into the process, you start to realize that you have a problem. The pieces aren’t lining up like you envisioned, there are some extra pieces lying around, and you know that the overall product just isn’t right. And there it is – your well-intended enthusiasm led to shortcuts and now you’ve got a big problem.
Strategic Pricing Specialists (SPS®) approach pricing as a STRATEGY.
SPS® designees have the skills needed to navigate the pricing strategy, and know how to help sellers understand how agents work, apply market trends and value the process of “how buyers buy” to ensure that they get the maximum return on their investment.
Get the SPS® Designation
Obtaining the SPS® designation is a simple two-step process!
- Complete the one-day SPS® course
- Submit the $79 designation fee.
There are no annual fees or continued educational requirements.
This course will give you knowledge that will increase your bottom line throughout your entire career. Get the SPS® designation to start seeing an immediate impact on your business.
*SPS is NOT a CMA class. If you are looking for the mechanics and calculations for deriving a CMA or BPO, please check out the BPOR course.