|
Determining the Listing Price
Pricing
your home is an art not a science. Achieving the optimal
price is the result of both objective research into similar properties and
instinct in determining how much a buyer will be willing to pay for
your home. The right price will attract
showings, which will generate offers.
The unfortunate
fact is that price is the number one
factor that most homebuyers use to determine which homes they want to
view. It’s also important to remember that although you and your
Realtor set the asking price, the selling price is determined by the buyer.
The Correct Price Will:
-
Result in a quicker sale, with less inconvenience to the seller
-
Expose the property to more buyers
-
Increase Realtor response
-
Generate more ad calls
-
Prevent your listing from getting stale or “shop worn”
Typically homes
that sell more quickly, sell closer to or sometimes over asking price.
Some Common Reasons for Overpricing
Overpricing Pitfalls
-
Most of the
activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents.
-
There is a
pool of buyers who have seen most
available homes in their price range and are now only waiting for new listings
or price reductions. A buyer that has been waiting, may fail to see your home if it is priced too high.
-
Sometimes, a price
reduction may be too late, as interest by both buyers and Realtors, may have
waned.
-
Buyers and their
agents are very aware of the length of time on the market, the
most common question continues to be: “How long
has it been on the market?” Often
buyers are reluctant to make an offer on
a home that has been on the market for “awhile” thinking
that there is something wrong with the home.
-
Unfortunately, overpriced
listings frequently help you to sell your neighbor’s
reasonably priced home, making it appear that their home is priced very well.
The Role of a Real estate Agent in Pricing
-
Provide
you with a comparative market analysis,
which is a comparison of recent homes with
similar amenities that are available, in escrow and sold.
-
There
is no “exact price”; your home is worth what a buyer is willing to pay.
-
The
market determines value; together you and
your agent determine asking price.
Realtors have no control over the market, only the marketing plan. The
seller determines the asking price. Never
select an agent based on price.
Phyllis Harb is
a Marketing Specialist at Dickson Podley Realtors. She offers both an extensive
banking and real estate sales background.
She can be reached @ (818) 790-7325 or Phyllis@RealtorHarb.com
|