Ask the Experts – How to price a home to sell is one of the most difficult challenges facing real estate brokers and their agents. Sellers attentively listen to their Realtors’ recommendation on the market value and recent sales in the neighborhood. And subsequently hike the sales price up with the belief that they can reduce the price later. The flip side of this scenario – the agent agrees with the higher price!
Most real estate agents is excited to get a new listing and will gladly accept the high price listing with a mutual agreement that the sales price be reviewed after 30 – 45 days of marketing the property. With this contingency or agreement in place you can be assured the home will not become stale on the market which results in a lack of overall activity. Price the home from the start realistically comparing similar properties with the current market conditions and recent sales in your neighborhood!
As a seller you do not want to not look like a clueless homeowner. Increasing the asking price should only be considered after taking in consideration recent home remodeling projects. These projects include remodeling the kitchen, bathrooms or replacing the roof, adding hardwood floors, a new garage door, or updating the insulation. Other minor improvements, e.g. updating the landscaping around the home or painting the interior/exterior will add value that should be considered when increasing the asking price.
Housing statistics show that listings with a price reduction sit on the market longer. Even our newly developed Bright MLS system notates those properties with price increases or reductions. When the days on the market increases a seller may net much less than if the property was priced correctly from the date of the initial listing agreement. Houses that have been on the market for a long period of time alerts buyers that something may be wrong with the home. Or, the sellers adamant about the price or are difficult to negotiate the terms of a contract fairly. In addition, the longer the property stays on the market diminishes a buyer’s overall interest in the property. Increasing the number of days on the market could ultimately affect a seller’s net proceeds going forward contrary to pricing the property in line with the recent sales data at the beginning of the marketing period. As a seller you want to set a sales price that ultimately creates a competitive bidding frenzy that should ignite multiple offers and high interest. In this scenario multiple offers should produce a much higher sales price and/or less closing conditions and contingencies.
As a professional Realtors are trained to provide an important service, benefit and information to our buyers and sellers. If you are thinking about listing your home for sale consider the above information when finalizing the asking sales price of your home. As Realtors, we work diligently and ethically to protect your rights! Give us a call with your questions and concerns!