How to Set a List Price for Your Home
Setting a list price for your home is easier said than done. It usually involves evaluation of different financial factors and marketing conditions. During the process phase of home selling, your real estate agent will help you set the price range that is based on:
- Estimated net proceeds (The amount of cash you want when the sale is successfully done)
- Offering incentives (To hasten the sale)
- Market conditions (Is it a seller’s market or a buyer’s market?)
- Comparable sales (Price against the comparable sale in neighborhood)
- Pricing consideration (Finding a balance between too low and too high)
The agent will consider these all, but will never give you an exact price because that is ultimately for seller to make/decide. Although the seller are not require to do the pricing according to the levels of inventory or the condition of the market, it is wise to first discuss these kinds of matter with your real estate agent in order to make a more informed decision. Here are some of the considerations that you need to be mindful of when setting your price list.
Discuss the price reductions before the listing of price
If you are not completely motivated in unloading your home, time will be on your side. Obvious or absent recent comparable sales, your home’s market value can possibly fall within a much broader range. If you want to be at the top range, you need to try it, and then carefully monitor the buyers’ traffic in order to see how the market is responding.
Agree with your real estate agent early if you want to try a higher price range end of your home, as you’ll need to drop the price after a period of time. Afterwards, you can now use the price reduction as a tool in order to get more and more buyer. At least you’ll understand that the strategy for higher price didn’t work.
Low pricing does not guarantee many offers
Many homeowners misunderstood when they hear about the other sellers who obtained multiple offers or were able to sell their homes for the asking price, they assume that it can also happen to them. But this is not right. You need to understand that not because your neighbor got 3 offers within a week means you will too.
All real estate agent understands that home that are receiving multiple offered as purposely priced love in order to get that kind of activity. If you will price your house low, you need to be prepared to take that low price. While it is not unheard of, increasing your price list several weeks to the listing will definitely turn off the potential buyers.
Agents look for quick Sale
The well-intentioned agents like Susan Kazarian or Visalia modern brokers in California don’t wish to watch your home just sit on market. They completely understand those kinds of home will be sold for less if it stays out for weeks and months. This is the kind of battle that you need to avoid. Susan Kazarian as a real estate agent will definitely make ways for you and will agree to support your strategy for higher price end and make your home be sold immediately.
Identifying the true market value
The real market value of a home is what a willing and able seller and buyer agree to in arms-length kind of transaction. But you would not have any idea until the process ends. However you need to know that a home that’s price right can get steady action in the market. Once you have received 2 or 3 potential buyers, it only means that you have hit the real pricing mark.