Real Estate Appraisal Practice Exam

What pricing strategy should sellers use to maximize proceeds against competitive properties priced at $370,000 and $375,000?

1. Price it significantly higher than competitors

2. Price it at or just below the competing properties

3. Price it artificially low to attract buyers

4. Price it at $350,000 for quick sales

The correct answer is: Price it at or just below the competing properties

Choosing a pricing strategy that places the property at or just below competing properties is effective for maximizing proceeds in a competitive market. By pricing it at or slightly under the range of $370,000 to $375,000, the seller creates a perception of value that can attract more potential buyers. This approach capitalizes on the interest generated by the comparative prices, drawing attention to the property as a good deal without undervaluing it. This strategy also encourages competition among potential buyers, potentially leading to a bidding war, which can drive the final sale price upward. A price that is strategically set just below competitors helps the property stand out while still positioning it as a valuable option, rather than making it appear inferior due to a significantly lower price point. Using this method, sellers can effectively navigate the delicate balance of being competitive while not leaving substantial money on the table, ultimately leading to maximized proceeds in a favorable selling scenario.