Pricing Property
The right price is most likely the best price.
Previewing homes is essential, not only for knowing what is for sale, but also to be able to identify market trends. I generally preview more than 20 homes a week, which equates to more than 1,000 homes a year. In preparing the competitive market analysis on your home, I preview and study as many properties as necessary until I am confident of my list price proposal.
The first step is using comparable real estate sales information on your neighborhood or a comparable one. This is how I come up with a price range for your home. Then I incorporate key market factors that affect the range, plus or minus. Then I incorporate your home’s comparable amenities, plus or minus. Key factors influencing the market affect the time it takes to sell your home and ultimately, the sales price. Recognizing those key factors is critical to setting pricing and sales expectations.
Key factors you CAN and CANNOT control:
We do not Control
1. Location
2. Competition
3. Market Conditions
We can Control
1. Condition of the Home
2. Ease of Access for Showings
3. Terms
4. Price
A HOT MARKET: Depending on the activity in your neighborhood, I take into account expected price increases, even if no closed sale data is available. When we factor in that estimated value information in the price of your home, we need to watch activity closely to make sure we are not “over-priced” for too long in a given market period.
SLOW MARKET: If you are over-priced or there is a market slow-down, we will know within 30 days after listing. Feedback from other agents and the simple fact that we haven’t received an offer may mean that we are probably 5 percent over market price. Depending on the initial list price, price reductions typically need to be at least $10,000 to attract new buyers.
Statistics have shown that an accurate list price will most likely bring the best closing sales price. Beware of pricing too high! By over pricing, you might miss out on the best time of year to sell your property and even get a lower price than you originally anticipated at a much later date. Yes, the right price IS most likely the best price.
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