Hey there, Jared Jones. So it's time to go to the marketplace and you are getting ready to price your home and you want to make sure you're set up for getting the most back from the market that you possibly can. That's what we're talking about today. Hi, this is Jared Jones, broker-owner of Jones group real estate. Today I'm sharing with you all the tips and tricks that you need. Probably going to share some things that you've never heard from a real estate broker before on how to price your home effectively. So the first thing we're going to do, I'm going to give you a quick exercise to understand how a buyer sees your home because oftentimes you have your seller hat on and you get focused on the wrong end of pricing and doing it effectively. When what you really want to understand is that pricing doesn't equal.
What you make for your house. The asking price is a function of the marketing. It's a function of how many buyers you attach to your house and bring to the table in the advertising of your home. Don't think of it in the traditional sense. Most sellers think price. I set equals what I make. That's not how it works at all. The price, you set affects marketing. Here's an example. I'm going to show you now on screen two ways that buyers will see a home based on the pricing method. So pricing method, number one, we're going to call the wiggle room price. So pricing method. Number one, right now, it is the idea of, okay, all the homes have sold in my area for 500,000. I'm going to list mine 50,000 over what they've been selling for. We call that wiggle room or the idea that I'm going to throw it way up high and come down.
The second model I'm going to show you is called the auction effect and the auction effect is a different model where you actually price the home to where you attract maximum attention during prime time. So let's look at this really quick. Cause remember you think price set, I'm looking at my home. This is what it is. You think about gesture home. But in reality, you need to understand the outside marketing effect. And here it goes right now. So imagine you're looking on the screen and you're a buyer and you're on Zillow and you're like, Oh, here's house number one. Cool. I like it. Here's house number two. Ooh, I like it. Here's the house. Number three, your house wiggle room priced. Oh, here's house number four. How did that house attract the buyer? Now let's look at another area. Here's the idea of auction-style pricing. The buyer is in this price range of four 50.
Number one. Wow. House number two. Wow. House number three, Whoa, house number four, back to house. Number three, the agent gets a call. Let's go see that house. And every buyer wants to come to see it all the way up to 500,000. I mean everybody inside that price range and beyond come to the house. Now let's step this back. The buyers on house. Number one is constantly week-in. Week-out rejecting that house. They're not coming for it. They're not the interested in the house. Number two, under that theme, there's a bunch of interest. There's a bunch of attraction and what's going to happen. It's going to bid up. Now. You might say to yourself, okay, Jared, walk me through this. Okay. My house is worth 500. You said that person might price it at four 50 or four 75. Yes. That is something that savvy sellers do. Do they want to meet the most demand for their home in prime time?
What they understand is I'm going to price my home below the market to really push the market. And even at the end of the day, if something doesn't work the way I want, I don't have to accept an offer below Mark, get value. It's the idea that what my price is, does this equal. What I sell for the other thing that sellers often don't understand is that there's a prime time zone, for every home on the market. Okay? There's what you call prime time. Traffic prime time traffic is the honeymoon period for any listing. So every time a house hits the market, depending on that particular subdivision where your house is, the features it has and how much interest there is, and how many available homes there are in that exact marketplace. There might be a situation where it's extraordinarily tight and your rep, your Jones group rep is going to be able to tell you and give you a scorecard to exactly what's going on in the market at a given time that Hey, Mr. Smith, there is nothing for sale. We're going to have the immediate attention of the market in that case, in a market like that, you can price it at the end, even above comps, and be fine. But you do not want to go more than two or 3% over the last comparables unless you have major mitigating factors that the market will find valuable. So that's the thing I want to describe for you. The other thing too is primetime may not be the same for every sale. You might have a home that is that's urban high demand. It's going to sell very fast and the primetime period is very short, which means you do not want to have your home on the market for two months. If you have a prime time period of two to three weeks because, after two to three weeks, the market's going to scratch their head and look at your house and say, what's wrong with it?
Why is it still here? And so many people miss the opportunity to get their home in and out of the market during prime time. Here's the other thing. You might have a luxury home, or you might have a home that's rural. And in those situations, your prime time period might actually be four months or three months or two months. Meaning there's very low demand. There might be a lot of homes for sale, and you might have neighbors that have taken a year to sell so that if you're in and out of the market in three months, you're considering it a huge win. Now, most sellers kind of know where they are in these situations, but our rep will be able to tell you how much market demand there is and how fast it's going to sell. Let me share more key faculty that you need to know about.
There's a huge spike in sales, the velocity of market demand that you have during prime time that you do not experience any other time. Here's the benefit of that. There's a period of time where you as a seller can stretch the market in your favor, irrationally. So we're coming out of the Gates and the first 10 days they see it. They love it. They pay a crazy number because there really haven't been other buyers. It's not been on the market too long. They don't know what anybody else is willing to pay. And so they just come in strong. Now, if you miss prime time, then the buyers on the outside of that window know that you've on the market too long. And then they start doing self-preservation moves. So instead of being coming at you with high force and high velocity, getting really aggressive with their offering, they get very risk-averse and they get more concerned that they're not going to overpay for the house where they get concerned with what's wrong with this property.
These are the things that culminate into a painful process. Missing prime time. Think about this. You go over the timeframe longer than the market average when you don't necessarily need to be, you may not sell for more than you would have during prime time. And then thirdly, you're still prepping your home. You're leaving for work, putting everything away, knowing a showing is going to happen in the afternoon and you got to get everything ready. And all of that is not fun. Okay? It's not fun for anybody. So if you're doing it right and getting your home really ready for a showing, it just takes time with all that said it's best to come out of the Gates with a strong plan that meets the market and keep in mind the agent that you're working with. Our team. We work together on looking these houses over before they hit the market and making sure we do price them well.
There are times where we're going to err on the side of wanting to preserve as much value as we can. And we're going to price a little high and that will push the numbers. And what I'm saying is to be willing to make adjustments when they're needed. Because a lot of times, you know, we'll read the market and the market will shift. The market might be going up, but, but then it can turn on us. And so, you know, be prepared that if we need to make adjustments that they may need, they may need to happen. We'll never be behind the curve on that as a goal. So as a team, we're going to be in front of that constantly on doing monthly updates to watch the market and, and have you fully educated on the process. As we go, that's it hope you have a phenomenal selling experience.
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