“We can always drop our price, but we can’t go up.”
That is a familiar refrain, one we hear every week from hopeful home sellers.
Realtors have long known that the best shot for getting the highest price for a client’s home is in the first few weeks, with a home that is priced correctly from the first day it is listed. National home selling statistics have shown time and again that sellers who overprice their homes will end up with multiple price reductions, and an eventual selling price lower than what they might have received if it had been priced correctly from the start.
So how do we real estate professionals determine the right listing price for your home?
I’m going to give you the recipe for the secret sauce! Here are the steps we follow:
- Pull all the recent activity from the MLS for that particular neighborhood (3-6 months depending on how hot the market is). Include homes that have sold, homes with pending sales, homes currently for sale, and expired listings. These are the “comps” – the comparable sales, plus the competition (the active and pending listings) and the failed listings (the expireds).
- Review each comp and compare it to the client’s property. We are looking at how comparable is the location, the size, the condition and extra features of each of the comps as compared to the client’s home. This is where we carefully scrutinize property photos to see if the comp had recent updates or improvements, and we look closely on the map at each property’s location, ie, does it back up to busy street, or overlook a nice lake or golf course? We ideally want to use the comps that are most like the client’s property.
- From the resulting set of properties we can see what the actual, recent sales price range is for the truly comparable sold properties in the neighborhood.
- Also from that set we can see the properties that failed to sell. Assuming they are similar in size, condition and location, they reason they didn’t sell was probably price.
- Lastly, we look at the competition – the other homes for sale that buyers would be looking at in that neighborhood.
The sweet spot for getting the best price is to list the house at slightly less than the other comparable properties that are currently for sale, and just above the prices of those comps that recently sold.
THAT is where the buyers are.
For many, the real trick is to be objective about your home. Lots of us feel our house is the best one on the block, and to us it is!
Hire a highly-trained listing agent (us of course), and be guided by our experienced eye. We can help you see which points of your property are superior to the other homes, and which points are not. Let us help you get the best bottom line from the sale of your home. Call us if you are considering listing, or just want a market analysis, at 727.286.1249.Google+