So you’re ready to list your house, and you know, deep down, that your house is worth at least $xxx,xxx. Minimum. And probably more! That’s fantastic – good luck with that! But wait a minute – who really sets the sales price?
Before you call me out for trying to boss you around (this is YOUR house, after all), hear me out. When push comes to shove, the Seller is ultimately in charge when it comes to settling on a Listing Price. What the Seller will not be able to control, however, is whether the house will actually sell for anywhere near that price.
So who IS in charge around here? The answer is part art, part science and all about the state of the market. There is definitely more to pricing a home than picking an attractive number out of the air.
Determining Comparable Listings is the first step in building a fact-based sales price, and the ability to find and select valid comparable homes, or “comps,” is a skill that is learned initially, but grows with experience. Ideal comps are those that have actually sold, not just the current listing competition. One four bedroom house might seem equal to another four bedroom house in the same neighborhood, but what if one has a two car garage and one just a single, or one has a finished basement and the other is unfinished. The yard, location and condition of the property can also come into play. The value of a listed comp vs. a sold comp are definitely not equal – the listing price of a home may be far removed from the final sales price, which is why sold properties make for the truest, fairest comparable home when determining price.
Every neighborhood is different, and knowledge of current trends also plays a role in setting a viable Listing Price. Is the neighborhood up and coming? Are there plans for road construction nearby in the near future? Has the neighborhood school recently won a prestigious award? Factors like this can have a subtle but noteworthy effect on home prices in a given neighborhood.
But what if time is on your side? Even if you are in no hurry to sell, you’ll start to tire of the process if your home lingers on the market. And there is definitely an expiration date for the price on your home if it hasn’t sold yet. Consider this – studies show that no matter the state of the market, the first two weeks of your sale are vital. If your property is overpriced, you will quickly lose the interest of buyers currently on the market and have to rely on new buyer traffic, which is a trickle compared to the larger group of buyers in the pool when your home is first listed. Even if you’ve got all the time in the world, be flexible and be willing to price it right.
Are you thinking about selling in this hot market? There are 6,000 fewer properties on the market right now than were for sale this time last year, and buyers are keen to find the right home – maybe yours!
Call me or drop a line – I’m here to help you price your listing right or find your next dream home at the best possible price in this market.