‘New’ idea: Lower the price of your house in order to sell it

In Biz, Fayetteville, N.C., Smartness on December 23, 2007 at 6:37 pm

Well, I guess it’s a little bit more scientific than that. They call it absorption-rate pricing. It’s a little complicated for the average, math-challenged journalist. But it’s not hard to imagine a Multiple Listing Service-based algorithm that’d do the work for ya. Basically, the idea is to actually use real-estate market research to set your sale price, not just your gut feeling, or that of the real estate agent.

If you are in no hurry to move, then, yes, you can offer your place at the high end of the market and hope someone eventually comes knocking on your door. But if you want out fast, you have to be more realistic. Thus, you need to find a price point at which it will sell as quickly as you need it to.

Absorption-rate pricing isn’t new. Practically every type of business uses the technique. But it is new to real estate. “Our industry is just now catching on,” says Fayetteville, N.C.-based real estate agent Zan Monroe, who teaches agents how to help clients determine an asking price commensurate with their need to move on.

There are some other interesting tidbits, too; worth reading on a slow Sunday if you’re trying to buy or sell a house and you have a wonky mindset.


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