Everyone typically wants to know How Best to Price a Home For Sale. Some think that appraisers have a specific dollar amount they will reward a seller for a particilar feature. The first part is a bit of math and analysis. The last part is "the proof is in the pudding." An appaaiser cannot give value, he/she has to see proof and cannot create value.
Pricing a home for sale is not an exact science in my humble opinion. After all, two people might pay entirely different amounts for the same house. Then, how best do you find that price to entice most buyers?
A buyer will not pay more than he/she feels is the fair market value. If they love the house, they might be inclined to pay more for it. If they aren't in love with a house, they may "dicker" more than another buyer. And if they "like" the house but aren't in love with it, well you have some magic to work. If you learn, as a listing agent, what feature they aren't in love with - it's a good idea to work to resolve that to ensure a sale.
Separating the different buyers in the pack based on the home's amenities is, at least to me, the best way to start working on a list price. Say the home has an odd feature about it. Is that feature changeable? Can the feature be removed to entice a buyer? Or is the feature so glaring that you have to list the home for less money?
What if the home is in a great neighborhood, but it backs to a busy road? That aspect of a home can cost a home thousands in value. How much? That may depend on how busy the road is in rush hour traffic.
Comparing the obvious comparable sales for a similar size is of course the first step in the process. Next, compare the number of bedrooms and bathrooms. If the number is less than a similar comparable sale, list the home for less money.
Similarly, if a home has a larger than average lot size, it might be worth more money, unless of course if it is backing to a busy road. But what if the interior of the home is so stunning that the location is completely negated?
Starting with a list price that is not so exhorbitantly high that you miss the market is key to getting showings.
If you have no showings, your price is too high.
If you have many showings in the first few weeks and no offers, and you are in a sellers market, then your price is slightly high.
Interviewing showing agents is also helpful for a seller who might not understand their price is too high. Buyers agents are hearing first hand what their buyers are interested in and which homes they will buy.
Armed with that knowledge, price adjustements can be made and a sale surely follows.
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