The Three Types Of Price
Introduction
Most, if not all, pricing strategies are based around three broad types of price. Here I discuss what these types of price are and how they relate to each other.
The perfect price, the fast price, and the risky price
There are essentially three broad types of price: the perfect price, the fast price, and the risky price.
The perfect price is essentially the market value of our home (or even above), for example, £1,000,000. Naturally, this is the price that we want to achieve.
The fast price would be regarded as the figure below the market value of our home, for example, £900,000.
The risky price would be regarded as the figure above the market value of our home, for example, £1,100,000.
How to achieve the perfect price?
As you may already be aware from going through this guide, I am a strong proponent for pricing our home in such a way to encourage strong buyer engagement, in particular, presenting a price that is sufficiently compelling to excite buyers and stimulate their interest to want to come through our door for a viewing! Only then are we then able to attract the strong level of interest, competition and demand we’d need to achieve the best price!
The very best way to encourage strong buyer engagement, stimulating buyer excitement and interest, is with the fast price. Listing our home at the fast price can encourage strong buyer engagement, as well as attract the strong level of interest, competition and demand that’s needed to push up the price to meet the perfect price!
What is the best way to implement the fast price?
I have extensively covered the best ways to implement the fast price from the following perspectives below. Click on any of the sections below and join me as I discuss each one in more detail.
Saleable Pricing
Accessible Pricing
Buyer Enquiry Pricing
Band Pricing
What about the risky price?
According to Rightmove, sellers who choose to list their home at the risky price generally tend to miss their chance at achieving the perfect price, and eventually end up selling for the fast price, or even lower!
Simply put, overpricing a property does not serve any seller whatsoever!
I have extensively covered the traps and pitfalls of overpricing in the following sections below. Click on any of the sections below and join me as I discuss each one in more detail.
Getting The Price Right The First Time Matters
The Time Value Of Our Home
The Cost Of Waiting For The Market
Social Proof Affirmation
Seller Sentiment And Bias
Our Likely Buyer Pool
Band Pricing
Should we list at the perfect price?
It’s easy to understand why choosing to list our home at the risky price can be an ineffective pricing strategy and counterproductive to our purpose of not only selling our home, but also for the perfect price, only to end up selling for the fast price, or even lower!
But did you know that even listing our home at the perfect price isn’t necessarily the best way to sell it, at least not for the perfect price?
How can this be?
Listing our home at the perfect price, or more specifically, at the fair or market value, can reasonably attract buyers and offers without a doubt, but not necessarily enough buyers and/offers to achieve the very best price that we could possibly achieve compared to listing it more attractively, i.e. at the fast price.
Simply put, the perfect price is not necessarily an accessible price that could help us to achieve the perfect price itself!
In fact, although listing our home at the perfect price is certainly a more sound pricing strategy than listing it at the risky price, we can still end up selling it for the fast price, since the perfect price does not necessarily mean that our home is offering a stronger value proposition than the competition (especially not if the competition are also listing at the perfect price), meaning that our home is not any more saleable than the competition!
I have extensively covered accessible pricing and saleable pricing elsewhere in this guide. Click on any of the sections below and join me as I discuss each one in more detail.
Accessible Pricing
Saleable Pricing
Getting in touch with me
If you would like to discuss any of the above points with me further, or if you need help or have any questions in general, click here to get in touch with me.
In the next section, I go over what I personally believe is the single most important aspect that any seller would need to understand, as it significantly impacts the value and price of a property - that is, the time value of our home once it enters the market.
And so I highly recommend that you join me in the next section.