Special offer

Pricing: maybe it really is rocket science?

By
Real Estate Agent with RLAH@properties AB95346

This weekend, I've got a new listing coming on.  And the search is on for the magic number, that perfect asking price - not too high.  Not too low.  Just right. 

It should be easy.  Just look at the comps.  But they are all over the map. 

This home is in a close-in suburb that dates back to the 1940's, and over the years each home has had some owner or owners add their own "special" touch.  And unlike the cookie cutter approach that characterizes many suburban neighborhoods, this one is pretty architecturally diverse. 

This is the kind of neighborhood that gives the online pricing sites fits.  For the past six months, I've been tracking the sales pretty closely.  And I invited my office to a pricing party.   Then I did a side-by-side comparison that got down to the picky differences among the various comps.

And I had a long conversation with the listing agent of one that sold on the very low side.  And she shared the feedback she got on hers - a similar house with a whole lot of steps to the front door from the street.  That got thumbs down from people with small children and from folks like me who are knee challenged.  It also had pet and smoke issues and backed up to a busy street. 

My listing is a pretty center hall brick colonial, a style that is very popular with DC area buyers.  It's sits on a tree-lined street with lots of lovely landscaping up and down the block.  The current owners have kept it up beautifully, and it's one of those rare homes that hasn't had smokers or pets to create interesting smells or scratched up or stained wood floors.

And while the house is a bit more than the recent comp with cat and smoke issues, it's a good bit less than some of the others.  So, not too high.  Not too low. 

Just right?  Dang!  I sure do hope so!

Man!  This is rocket science.

Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

A unique home that defies the cookie cutter comps fans, this can be an opportunity to really show your sales skills convincing the buyers and their agents that it should command a premium price.

Jun 05, 2014 02:48 PM
Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

Good luck with your sale!  Keep us posted on the final sales price!

Jun 05, 2014 03:01 PM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I have one like that now, Pat. Our houses are unique, have been remodeled (or not) over the years, some on narrow hilly roads, others on flat walkable streets. Pricing is always a challenge--finding that sweet spot isn't easy.

Jun 05, 2014 03:10 PM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

It takes a lot of work and evaluation to come up with that "magic" number. I spent a lot of time when I was doing comps to try and get that "just right" price!

Jun 05, 2014 03:14 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Pat - a lot of my market for single family homes is just like that the neighborhood you describe -- pricing, as I see it, is part science, part art and part knowing what will tug at a buyers' emotions and then mixing it for the makings of a transaction that comes together. Best of success with your newest listing -- it sounds like a great opportunity.   

Jun 05, 2014 05:42 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Pat. The right price sometimes defies science or even common sense when it comes to unique homes. It sure can be tricky for sure.

Jun 05, 2014 07:15 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Patricia.... you're right....it's NOT an exact science and when there are variables, it results in using your instincts!!!

Jun 05, 2014 07:30 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Which is why you do what you do, and I do what I do Patricia.....I was never into rocket science.

Jun 05, 2014 08:21 PM
ReadySetLoan Team
ReadySetLoan Condo Team LLC - South Windsor, CT
Residential, Commercial & Condo Financing Experts

Hi Patricia - anyone can price a home.  But it does take great care and analysis to price it correctly.  It sounds like you have done sufficient research to make sure of that.

Jun 05, 2014 09:32 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

So, since it's just right, did you try the porridge and lay down in the bed that fit you?

Did the bears come home?

Jun 05, 2014 09:32 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Not so high, not so low, but just right!  I was going to say the porridge line above too!

Jun 05, 2014 10:23 PM
Marshall Enterprises
Marshall Enterprises - Saint Michael, MN
Antiques, Lawn Care, and Trashouts

What an attractive home.  I love brick houses.  Wishing you all the best on finding the magic number!

Jun 05, 2014 10:27 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

This one inspired a blog because there was no rhyme or reason when I looked at the various numbers.  A great house sold for a pittance while a smaller one a few doors down flew off the shelf in a nanosecond for more money. 

It's those pesky nuances!

Jun 05, 2014 11:31 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Pat, Not rocket science at all. It is pure ART. And you are the artist, for sure.

Bill Roberts

Jun 05, 2014 11:51 PM
Broker Patty Da Silva Da Silva
Green Realty Properties® - 954-667-7253 - Cooper City, FL
Top Listing Broker

Congratulations in your new listings Patricia. And best of luck in your sale. Have a wonderful weekend!

Jun 06, 2014 03:42 AM
Yolanda Cordova-Gilbert
Richmond, TX

Pat,

 Let us know how it goes. I would be interested. Oh and by the way the blog you commented on was a reblog that trip was several years ago! LOL!

Jun 06, 2014 08:40 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

I go through that in Crystal Beach and the surrounding area as well. It is amazing how difficult it really CAN be!

Jun 07, 2014 07:06 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

After all that rocket science...the house sells quickly. Then the sellers wonder...did we price it too low?  Good luck  finding the lucky buyer and hopefully the right price.

Jun 07, 2014 08:43 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Pat. Rocket Science and Real Estate, now there's a new one. I think your process is appropriate and I hope the home sellsquickly and well. Suggested.

Jun 07, 2014 09:17 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Thanks for your comments!  So far, it's interesting.  There is at least one couple circling the place. 

Jun 08, 2014 08:10 AM