Never select your Realtor based on the list price they recommend. Although it may seem that a Realtor who suggests a higher list price will result in a higher net to you, the opposite often happens. What you don’t want is to create a bidding war among agents, where they quote you an artificially inflated price to “win” your listing. The result will be an overpriced listing, a frustrated agent, and potentially months of lost time…chances are you will end up dropping your price in the end, often to a number below what it was really worth originally because it has become market worn.
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Here are 2 important concepts to remember when pricing your home right: Realtors all have access to the same data. And, although you may not like what it’s telling you, the market is never wrong. The market is what sets “fair market value” for your property (not the agent)…the balance between available inventory and ready, willing, and able buyers.
It is far more important to select a Realtor who will tell you the truth, even when it’s not what you want to hear. Objective advice is the only way to get a clear picture of what you can realistically expect to net from the sale of your home, and how long you can expect the process to take.
Make your Decision based on 2 Things:
- Your trust and comfort level with your agent. Communication is key…do they listen? Have they taken the time to thoroughly understand your goals, and what is important to you in this move? Do they have enough confidence in their ability to give you sound advice, even when it means telling you something difficult?
- A detailed, thorough marketing strategy for your property. Your agent should be able to target a profile buyer for your property. Then, they should be able to help you differentiate your property from other inventory in the same price range. Finally, they should lay out a plan for exactly where and when your property will be advertised, and a market strategy that encompasses multiple venues ~ such as the internet, the newspaper, direct mail, and homes magazines.
Once you’ve selected your Realtor based on their expertise and their specific marketing strategy for your home, then it’s time to decide on price.
There are several considerations when looking at pricing your home right. First and foremost, you need to look through the eyes of a prospective buyer. What homes will they be looking at in addition to yours? How do they compare in size, location, price and condition? Your Realtor will help you establish a price range to position your property to sell. How fast you need to sell, and the condition of your property will be key factors in narrowing this price range.
Next, you’ll need to analyze the effects of appraised value. Because 90%+ of all buyers get mortgages, most purchases are subject to an appraisal. Because appraisers approach value from a different perspective, it can often result in a different price. Appraisers are restricted to looking at closed sales (and the most recent ones) to determine value. It’s a snapshot looking backward. It’s important to anticipate what your property will appraise for, so that you don’t end up with an unwelcome surprise in the eleventh hour, when your moving van is packed and ready to go.
The first step in pricing your home right is finding a professional real estate agent who can help you do just that. Email us at concierge@lizmoore.com or click below for a complementary market analysis on your home.
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