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Determining the Listing Price
By Phyllis Harb
RE/MAX Tri City
Pricing your home is an art not a science.
Achieving the optimal prices is the result of both objective research into
similar properties and instinct in determining how much a buyer will be
willing to pay for your home. The right price will attract showings, which
will generate offers.
The unfortunate fact is that price is the number one factor
that most homebuyers use to determine which homes they want to view.
It’s also important to remember that although you and your
REALTOR® set
the asking price, the selling price is determined by the buyer.
The Correct Price Will:
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Result in a quicker sale, with less
inconvenience to the seller
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Expose the property to more buyers
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Increase REALTOR® response
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Generate more ad calls
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Prevent your listing from getting stale
or “shop worn”
Typically homes that sell more quickly, sell closer to or
sometimes over asking price.
Some Common Reasons for Overpricing
Overpricing Pitfalls
Most of the activity on your home will occur in the first few
weeks. Pricing a home properly creates immediate urgency in the minds of
buyers and agents. There is a pool of buyers who have seen most available
homes in their price range and are now only waiting for new listings or
price reductions. A buyer that has been waiting, may fail to see your home
if it is priced too high. Sometimes, a price reduction may be too late, as
interest by both buyers and REALTORS®,
may have waned.
Buyers and their agents are very aware of the length of time
on the market, the most common question continues to be: “How long has it
been on the market?” Often buyers are reluctant to make an offer on a home
that has been on the market for “awhile” thinking that there is something
wrong with the home. Unfortunately, overpriced listings frequently help you
to sell your neighbor’s reasonably priced home, making it appear that their
home is priced very well.
The Role of a Real estate Agent in Pricing
Provide you with a comparative market analysis, which is a
comparison of recent homes with similar amenities that are available, in
escrow and sold. There is no “exact price”; your home is worth what a buyer
is willing to pay. The market determines value; together you and your agent
determine asking price.
REALTORS®
have no control over the market, only the marketing plan. The seller
determines the asking price. Never select an agent based on price.
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