When you are selling your house, it is very normal to attach a price tag to the house. This price tag is called the listing price, and this is the price you are hoping to get when you sell the house. Some people do not simply use a listing price, though. Instead, they use something called a multi-tier pricing strategy, and there are several important things to know about this strategy.
What is a multi-tier pricing strategy?
The multi-tier pricing strategy is a system you can use that involves setting a base price for the house. This base price is the asking price for the house, and it gives people a chance to pay this price for the house exactly as it sits. In addition to the house having a base price, the multi-tier pricing strategy includes add-ons, and these are things that you can offer to buyers for additional prices. You get to determine what the add-ons are, and you will get to set the prices for the add-ons.
What are some things you could use in your multi-tier pricing strategy?
There are a lot of different things you could offer with a multi-tier pricing strategy, but the things you offer should depend on what the house needs. A great example of a situation in which a seller would use this strategy is when the house does not currently have central air conditioning. In this case, you could set the base price to be selling the house without air, but then you could add in that you will install central AC in the house for a different price, which could be an amount that is $10,000 higher than the base price.
You could do this for anything the house might need, such as landscaping work, a new furnace, or a new roof. You would simply have to state the increase in price that each add-on would be.
What are the benefits of using this pricing strategy?
The main benefit of using this strategy is that you may attract people who like your house but would not want to buy it without a particular feature, such as central air. When you use this strategy and the buyer wants an add-on, you would pay to have it done, and you would be responsible for hiring the contractor and making sure the work was done before closing on the house. The buyer would not have to deal with any of this.
A multi-tier pricing strategy is not commonly used in real estate, but there are some people that use it. It does offer some benefits, and you can talk to a real estate agent, like Steve Cohn - Keller Williams Realty - Petaluma, to find out if this might be a good tool for you to use when selling your house.