The Case for Pricing Conservatively

Quick:  which is more, 80% of “X” or 95% of “Y?”

The answer:  it depends on what “X” and “Y” are.

So, let me fill in some numbers, straight from today’s real estate market:  make “X” equal to $325k, and “Y” equal to $289.9k.

Now, it’s possible to calculate the products of those two equations:  $260k and $275k, respectively.

Price as % of List — or, Listing Lessons

Not only did the more conservative seller net more money, they likely did it much faster, with a lot fewer showings — and no gut-wrenching price reductions! 

Added bonus:  the Seller who got a higher percentage of a lower asking price probably yielded less on the subsequent Inspection, too.

That’s because — at least in my experience — Buyers who purchase stale and/or overpriced listings tend to negotiate any inspection issues more aggressively.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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