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Pricing It Right... the First Step to Selling Your Home...

If you have been looking forward to selling your home "after the first of the year..." there are many steps you need to take to assure success.
The first one is:  Make sure you do not overprice your home !
With today's real estate market in mind... it is even more important to have as much information available to you when pricing your home.  It must be competitively priced.  That means competitively priced using information on today's market conditions... and not on what happened last year or two or three years ago.  That market no longer exists.
You need an asking or listing price that fits in well with all of the competing properties on the market right now.  The more attractive your price... the more prospective buyers will look at it.
A professional Realtor has all of the usual market information available on Google, PLUS much additional information that is not easily available to most web-surfing home sellers.
Of course current available sales and closed home information is needed, but other factors are also needed to make your home priced correctly.  Size, condition, seller contributions, types of financing available, closing costs paid by the seller, and any improvements the seller made to enhance their home before putting it on the market... all of this information really, really helps when determining list price.
Many times a seller will really push their Realtor to "test the market."  By that... they mean over-pricing it for... ohh... thirty days... and if it doesn't sell... then reduce the price.
What that can easily lead to... is not having your home competitively priced until after it had been "branded" as over-priced for thirty days by both the buying public... and the Realtor Buyer Agents.  Not a good plan !
The easiest way to get less in your pocket or purse when you sell your home... is to over-price it at the beginning.

Comment balloon 14 commentsKaren Anne Stone • December 30 2008 10:41AM

Comments

I agree 100%!! You have to price the home right or its not going to sell...there is just too much competition out there right now!

Posted by Team Honeycutt (Allen Tate) almost 10 years ago

It is amazing how many people test the market and then end up chasing it only to lose way more than they would have if they had just priced it right from the start.

Great advice,

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 10 years ago

Allen:  Yes... no more time for must messing around by "testing the market."  These days... having it right from day one is so important.  Thanks for commenting.  Have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

Todd:  I really like that phrase.  People who test the market often end up chasing it.  That is great !  And sure they end up losing much more than they would have if they had just priced it right from the beginning.  Thanks so much for your comment, and for the great "line."  Have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

Hi Karen Anne... Pricing is absolutely key and sellers have 2 choices, they can get ahead of the market by pricing aggressively and selling in a reasonable timeframe, or they can chase the market making their property appear distressed and themselves appear desperate going into negotiations.  A REALTOR can advise sellers on how to sell their home most effectively. 

Posted by Steve Shatsky almost 10 years ago

Karen, If only our sellers could see the market as being competitive. They seem to look at the houses as castles unto themselves, not very productive in today's marketplace.

Please have a safe and productive 2009 Karen! 

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) almost 10 years ago

The biggest mistake agents are making in this market is pricing the home on sold comp averages.  Sounds OK right?  The problem is that sold comps are 30, 60 or perhaps 90 days old.  Markets have been dropping at a rate of 1-2% per month.  Thus the 30 day old comp would need to be dropped 2% for next month....the 60 day 3% and so on.  If you price it at the average you most likely would have priced the home 2-4% above the market....and now you are chasing the market and will most likely end up losing the listing.  Just had a listing appointment and told the sellers that they are $75,000 over the market.  They told me that the agent showed comps this past summer that justified their pricing and they showed me the comps.  I told them the comps are correct; the problem is that the market has dropped 10% from those comps.  They told me the agent did not tell them that.  I told them that they may want to throw me out the window, but I am here to tell you that you need to price it further than $75k off the market so to get ahead of the market in January.

They are listing with me.

Posted by TIM MONCRIEF, Over 2,000 homes sold….. (Keller Williams Realty) almost 10 years ago

Tim:  I understand what you are saying, but still, all real estate is local.  There are some areas in DFW that have not dropped your 2% per month.  Many areas are steady, and some have gently risen.  It just "all depends."  All real estate is local, and even within local markets, there are mini-markets that definitely deviate from even that "norm." Thanks for your comment.  Take care, and have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

Steve:  Two very distinct choices... getting ahead of the market, or chasing the market.  I like the sound of that.  And yes, a home that has been on the market for awhile begins to look "distressed" and the seller "desperate."  Even within a market area, a Realtor is so necessary... especially one who has the "feel" for individual mini-markets.  Thanks for your comment.  Take care, and have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

Paul:  Well... that's why they have professional Realtors like you around... to bring their castles down out of the clouds and make them marketable.  Take care, and have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

I have seen sellers waste over one year "chasing" the market because they didn't price their home correctly from the beginning - it's sad and it makes the public think there is something "wrong" with the house due to the length of time on the market.

Posted by Carol Zingone, Global Realtor in Jax Beach, FL - ABR, CRS, CIPS (Berkshire Hathaway Home Services Florida Network Realty) almost 10 years ago

Carol:  I think it's a problem that many listing agents have with some of their sellers.  That is why I really try to develop a rapport... a relationship with my sellers... and try and adopt a "team effort" mentality when listing their home.  That way it is not me against them, but more like us against the world.  It usually works out well for all.  Thanks for commenting, and have a Great New Year !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

Karen,

GREAT advise! Price and condition are key!  Often, as a home stager I see clients who want to overprice their home, thinking they deserve all of the extra $$$. However, overpricing, usually leads to an unsold property.  Pricing your home competitively and having it in the best condition possible, makes your house stand out amongst the competition and is the best way to get it SOLD!

Posted by Michelle Pimentel, ASP, IAHSP Empire Home Staging (Empire Home Staging Solutions) almost 10 years ago

All the marketing in the world will not sell an overpriced listing....

Posted by Kevin Vitali, Helping Massachusetts Home Buyers and Home Sellers (EXIT Realty- Massachusetts Short Sales & Residential Sales) almost 10 years ago

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