How Will My Agent Determine What the List Price of My Home Should Be?
Real Estate agents do not determine the price of a home. We collect data from the local Multiple Listing Service and the tax records on current active home prices and the most recent past sales. We also compare pending sales ( those that show currently under contract, we can view the list price but will not be able to see final sales and seller contribution until the home sale closes) This determines the value range of a property.
We provide the home owner with the data and go over this to discuss the suggested list price, the homeowner has the final say. If the homeowner would like to have additional confirmation on the list price then it is suggested that they pay for an independent appraisal.
Comparing homes with regard to property condition , analyzing the current market and looking at price per sq footage we arrive at what we feel is the current market value. It is basically the broker opinion of the price of your home. We have to begin with the values in your direct community first before seeking comparable homes outside of the neighborhood. If there are not enough recent similar sales then a combination of price per ft of the neighborhood sales can be used in comparison to a few similar properties within a 1 to no more than 2 mile radius.
This should be a part of the listing presentation, to provide some recent sales information and data for the home owner to view. The final price cannot be determined until we actually walk through the property. We gather information from the county tax records which is not always accurate. You may have finished a bonus room, completed a basement and these items change the sq ft and bedrooms and baths. These things impact the house value.
A full time agent that works with many buyers and sellers has seen hundred's of homes via seller listing appointments AND having showing homes to buyers. Understanding those buyers expectation when they view your home. Property condition has a major impact on sales price.
As an agent we understand that home owners have an emotional attachment to their homes and in offering a value it is our goal to facilitate and smooth transaction certainly not to hurt feelings or offend. Values are what they are.. numbers not people :-)
Most homeowners feel their property should be valued higher than the current market of buyers may value it. I always provide my clients with a current list of properties on the market and ask them to view them at least online, if not drive by as this is their competition.
The risk of over pricing your home can be an extended marketing time, upon which you can eventually obtain an offer but they will begin to be lower priced offer and requesting more incentive dollars to purchase.
If your home is priced to high, you may not receive many viewings as potential purchasers view your home online compared to the other homes in the price range. If those homes are superior they will be purchased first. You should then consider a price improvement if your home has not received any offers within 30 days.
Ask for agent and buyer feedback after each showing. I set up an automatic questionnaire for each agent showing and ask all agents to please complete the survey, which I forward to the seller for consideration. This is an easy transparent way to receive information on your property. Typical questions are if the buyer liked the home and if they are considering an offer. It gives feedback on pricing and where the buyer ranks the property compared to others they have viewed.
Pricing it at value in a tight market or at the low end of range- can have multiple offers and go to "highest and best" which would be those offers that are above list price. It can also result in a quick sale.
Pricing the property in the median area is good as it will get good interest from buyers, sell within a reasonable marketing time , the property shall appraise at the contract terms and move forward to a complete closing transaction.
When is the best time to sell your home?
Anytime, each season has its positives to consider. There are fewer homes on the market in the winter... so less competition. More homes in the spring/ summer and more buyers in the market. It can slow down a small amount over the holidays but there are still many buyers in the market. If your home shows well and is priced right it will sell in any market.
If you would like a free consultation I can help you determine what is the best direction to take to sell your home and relocate to another property.
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