John Coons
Realtor®
408-985-2100
ext:229
408-203-4882
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By John Coons
Pricing Is Marketing (Continued)
Feeding Frenzy Pricing
This is a method of pricing that is expected to create a huge marketing BUZZ
by pricing the home below market value. This often generates multiple
offers. The seller then selects the best offer. This method will normally allow
the seller to complete the sale quickly, and get the best price possible.
This method is counter intuitive for most sellers. People normally think by
asking a lot they may get a lot and want to try a high price first.
Over Pricing
This method is not recommended. Sellers often interview several real estate agents, and some agents will attempt to outbid the other agents, by saying the home is worth more, or they will be able to get the price the seller wants.
Some sellers will like the real estate agent that tells them they can get this
high price, so some homes end up being priced well above the market. If the
real estate market in that area is rising quickly, and the home is on the market
long enough. perhaps the home will eventually sell. If the real estate market
is declining, the price will need to be adjusted.
Auction Marketing
This method is used to excite buyers into a bidding war. It is rarely used in
selling real estate. Some times land is auctioned. In slow buyers markets
this method is sometimes used.
Raffle Marketing or Lotto Marketing
This method involves selling tickets at a low price. One person will win
the property, and all the rest will lose their money. To sell a $500,000
property you may sell 5000 tickets for $100 each. One lucky person will
get a $500,000 home for $100. The other 4999 people will lose $100 each.
Advertising
Advertising is only part of the marketing process. This includes internet
advertising, newspaper advertising, TV, real estate magazines, and direct mail.
For more on advertising see the advertising section of this web site.
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