Pricing a ranch in these market conditions is very important. Too high a price, and the activity will be stone cold. If you price it at what “market” is, then you may get a few calls from other agents and maybe an inquiry or two. In order to sell a ranch in this environment, you have to be “below market” to get the calls. Buyers are sitting on the sidelines looking for a “good buy” and that starts with a below market price. What is below market? Well, determine what is on the market, what has sold recently and come up with a value and then lower it by ten percent. Market is what happens when a willing buyer and a willing seller arrive at a value that both can agree upon. This new sale will then establish the “new market value”.
Let’s discuss “chasing the market”. Chasing the market is when you list too high, wait six months or so with no activity and then drop the price. However, the new price is still too high so it sits another six months and then you lower it again. This goes on until you reach the real market value or take it off the market because “you think” it is a better property than anything else in the area.
In conclusion, price is everything! If it is priced right, it will sell, regardless of shape, size, location or condition. Price is the one thing that will make it happen. Be honest, listen to a professional ranch broker and get it done. My dad told me two good pieces of advice; pigs get fat and hogs get slaughtered, and you cannot go broke making a profit.