What is the "Right Price"?

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

I have heard numerous times over the last few months from Realtors wondering why their listing hasn’t sold. The usual comment is “it’s priced right”. Well is it really? My experience has been that any property will sell if the price is right. What is the “Right Price” in today’s market? Is it “Market Value” based on the last 6 months of sales? Is it based on homes that have sold in the last 30 days? Is it the “Appraised Value”?

The “Right Price” is the price that will sell your listing in 60 to 90 days. But what is this magical number and how do we arrive it? Well in my market (Poinciana, Fl) the right price is 5% to 10% below recent comparable sales. When Realtors are searching the MLS they may have 70-100 homes that meet their Buyer’s parameters. My Seller’s property, in order to sell, needs to be in the top 5 (preferably #1) properties on the list (by price) and it needs to have a competitive or better co-broke. If you can achieve this positioning you should have no problem getting the listing sold in a short period of time. Seller’s need to know this. It is very important when pricing a house to look at the whole picture that includes active, pending, withdrawn, expired and recently sold listings. I know this is Real Estate 101 but I have met with many Seller’s recently whose listings have expired and they have never even seen a “Market Analysis”. When asked how the Realtor arrived at the listing price they say “this is what we told him/her we wanted.” They used a little known technique to price their property it goes something like this:

Down payment for house I want to buy + moving expenses + credit card debt + closing costs + Realtor commission + current mortgage balance=“Market Value”.

Now I know this may be the new math but folks it won’t get your house sold. When hiring a Realtor it is important that that Realtor provides you with a detail analysis of current market conditions and counsels you on what it will take to sell your property. They need to be 100% honest about pricing. It may not be what you want to hear but it must be what you need to hear. Then and only then can you make an informed decision on how to list your house at the “Right Price”.

Posted by

 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
right price
market value
educational

Spam prevention
Show All Comments
Ambassador
2,561,346
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Baltimore, MD
Sell Your Home With Margaret Rome
Make sure the seller can "afford" to sell the house!
Jul 21, 2006 01:57 PM #1
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
You have that right Margaret. That's why it is so important that we give them the true price. Don't want them going out and placing a large deposit on another home counting on getting $100,000 equity out of their house when there is only $60,000 in it. Won't and they need to know that.
Jul 22, 2006 01:15 AM #2
Rainer
80,096
Gary De Pury, ESQ.
Bay Vista Realty - Land O Lakes, FL

This is going on all over the Tampa Market too and the biggest losers are we Realtors.  We are giving ourselves a bad name very quickly if we don't change as rapidly as the market.

 

 

Aug 02, 2006 01:55 PM #3
Rainer
16,000
Tyler Wedel
THIRD TENNESSEE REALTY - Monterey, TN
I Agrre make sure they can afford to sell there home and be willing to let a listing go to another Realtor if they want more than you feel it will bring
Aug 22, 2006 05:47 AM #4
Rainmaker
150,929
Eric Anderson
Prudential PenFed Realty (Fayetteville) - Fayetteville, NC
Fort Bragg Military Relocation Services, Fayetteville, NC Realtor

An accurate price is the only true way to sell the home.  For Sale can be miles away from Sold if the price isn't correct.

 

 

Eric Anderson, M.B.A., REALTOR®                                                                    
ericandersonnc@kw.com
www.ARGHousing.com

 

Oct 10, 2006 06:31 AM #5
Rainer
15,006
Jacqueline McCroy Elbert
RE/MAX Realty Suburban - Overland Park, KS
True...no matter how much the seller would like to sell the property, if they cannot afford to sell it then there is another discussion to take place.
Nov 15, 2006 01:42 PM #6
Ambassador
1,347,517
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co. - Frisco, TX
Real Estate Agents
Bryant: I am still learning this. Even though I have been doing real estate for 4 yrs (I know, it's not long enough), I understand how houses sell themselves at the right price. With the foreclosures around me, it is almost impossible to "compete" because you are not selling a foreclosure. What would you say to that?
Jun 04, 2007 07:51 AM #7
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Loreena, my market is also saturated with foreclosures right now. Unfortunately they do bring values down. They make it very difficult to sell. I just try to have very clean properties priced better than most homes. The foreclosures that are very low hopefully will sell quickly and get out of my way:)
Jun 04, 2007 08:43 AM #8
Ambassador
555,768
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Baby...

I don't feel much like Blogging but I don't want to fall too far behind on the point game. So I'm going to copy and paste this comment ten time :)

Maybe you'll get lucky...And I won't do this to you tomorrow :)

Folks...

Don't like...Tough :)

TLW...ROAR!

Jul 01, 2008 09:35 AM #9
Ambassador
555,768
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

The right price...

That depends on who you ask :)

TLW...ROAR!

Aug 18, 2008 11:17 AM #10
Ambassador
555,768
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Could you please...

Go over to The Crap-A-Rama and comment to the comments? :)

TLW...ROAR!

Aug 18, 2008 11:18 AM #11
Rainer
77,154
Bill Saunders, ABR®, SRS
Meyers Realty - Hot Springs, AR
www.BillSellsHotSprings.com

Bryant,

Thanks for the sharing of the wisdom. I very much enjoyed the webinar, and am now into the "biz"going on 7 months with 3 sales. Not setting the world on fire, but then it is a challenging world out there. I am looking forward to my first listing presentation. I followed the link in Jennifer's 74 ways to sell. This is great help. Thanks!

Feb 13, 2009 01:43 AM #12
Ambassador
555,768
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

The right price...

Is whatever price I say is right. Or is that wrong? :)

TLW...ROAR!

Dec 26, 2009 09:37 AM #13
Rainmaker
284,898
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

Thanks, Broker Bryant! This is the way I do it now, and I've had to walk away from a couple of listings knowing that another agent will come along and "buy" it.

Cheers,

Robin

Mar 07, 2010 01:06 AM #14
Rainmaker
85,488
Cliff Johnson
Solid Source Realty - Stone Mountain, GA

Bryant,

   Great article!

Mar 07, 2010 08:07 PM #15
Rainmaker
1,076,550
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Down payment for house I want to buy + moving expenses + credit card debt + closing costs + Realtor commission + current mortgage balance=“Market Value”

ROTFL - that was so-o 2006!

Sharon

Jun 14, 2011 04:24 PM #16
Anonymous
Agnes Tabor

Bryant,

The expression "Great Minds think alike" resonates here. I can attest to  your listing formula, having just recently closed on my listing.

The most important thing with my sellers was they needed to sell quickly. The 10% rule was on target so here is how it went down. 1)reviewed the comps prior to appointment, 2) all forms preprinted with all information except listing price, 3) seller and I were in agreement, 4) took photos, 5) later at my desk, entered everything into our MLS including photos. 6) by 9AM the next morning the calls started coming, received offer after first showing (Cash, less than 24 hours), continued to accept offers all for full price. by the time my last offer came in (that morning)the first offer came back and raised their original offer by $5500; my sellers accepted. So, moral, "price it right and they will come".

Oh, never had the opportunity to put sign out or add lock box!

Thank you for restating what we all need to remember.

Jun 15, 2011 03:32 AM #17
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,136,378

Bryant Tutas

Selling Florida one home at a time
Ask me a question
*
*
*
*
Spam prevention