Several weeks ago, a leading listing agent on Cape Cod in Massachusetts told the Wall Street Journal that sellers should underprice the market by 5% because of hurricane Katrina and an increasing inventory of unsold homes. Then two weeks later, an article in the Boston Globe’s "Big Move" told people trying seller their own home to overprice the market by 5% to 10%. So, in less than one month, sellers have been given advice that could translate into a pricing gap of 15%. More important than pricing strategies is the sellers’ net profit. A seller who underprices the market by 5% could actually net 10% less profit on their sale after paying traditional real estate commissions, right? Anyone can discount your property, so why involve a full-fee, full-service real estate agent at all?
We’d like to hear your opinion about pricing strategies, particularly if you are thinking of selling "for sale by owner." Just click on "Comments" below and begin typing, or call 617-876-2117 to record a 1 to 3 minute sound bite (which we may use in a future podcast).
Listen to conversation starter: Should FSBOs underprice or overprice market? (MP4, 2 minutes, 1.9M)
Date Recorded: 29 September 2005
Subject: Discussion about conflicting advice on pricing strategies given recently by industry experts in the Wall Street Journal and Boston Globe
Featuring: Bill Wendel (Real Estate Cafe) speaking with anonymous buyer agents in Massachusetts
Location: Massachusetts Association of Realtors, annual convention @ DCU Center, Worcester, MA