The Perils of Pricing Too High

Perils of Pricing Too High
According to data wizard, Peter Krause, "The principle of conformity states that value is created and preserved when a property’s characteristics “conform” to the demands of the market." Does it have a home office? Is the yard sunny and private? Does the home have hardwood floors. These are common attributes that have appeal to a wide swath of buyers in the immediate market.

Peter continues, "Thus, properties found within this price range are well anchored from a value perspective. Properties that lie outside of this range will, to one degree or another, be impacted by their non-conforming status." for example, a location that is near a body shop or a property that has 4 different flooring materials will find that those characteristics will pull the value proposition down.

This is described by the principle of progression/regression and depends on whether the property is inferior or superior to surrounding properties.

While there are many opinions on pricing there is only one set of facts. I will reveal more soon.