Pricing our Home

[Alfredo O.]

Good morning fellow investors. I am hoping that some of you can help us as we continue to move forward in our business. One of the biggest debates my wife and I have each time we list a property is the correct way of pricing a property. Of course myself, I've always wanted to price the properties high so we can get the most out of our investment. Can I get some input on the proper way of pricing a Home once the property has been 100% rehab? Or is the answer price it at whatever you feel is the right price and let the buyer worry about obtaining financing? I think one of the hardest items we have phase as we got into this business is shopping for the customer instead of allowing the customer make their own decisions. Me personally. Love to hear your thoughts on thoughts.

[Scott W.]

be "hyper local" - find the SOLD comps (not the ones listed; you can list it for whatever you'd like).

I have seen some who set it a tad higher than the competition trying to set a new comp. when I say setting a new comp, I mean by $2500-$5000 (homes typically sold in the $130-$160k range).

but what happens is this guy's houses sometimes sit for a while - once I saw for a year.

he set a new comp but his holding costs ate into his profit - and he couldn't get his $ out, lowering the yearly return.