You've just decided to SELL! Now....what should the price be?
Before you decide to hire your friend's Aunt or the Realtor you met in an Open House last year, do some research before putting your BIGGEST investment in just anyone's hands!! Consider the following:
1. Up-front pricing? Many agents go to a listing appointment presenting a list price – how can this be, when they haven’t seen the property yet? It takes me hours, even days to fully analyze all the data. Don’t choose the Realtor with the highest suggest price. They might be just “buying the listing” and telling you what you want to hear.
2. Data is key! Analyze the competition (SOLDs, Actives, and Under Contract):
· Tax Assessment Ratio
· Lot Differences/Views
· Staging....which I highly recommend. Here is a link on staging.
3. Go See the competition in person!! Check out Active listings in your zip code to compare your home and their price. Did the listing agent suggest to do this? Takes time, but worth it!
4. Assess today’s market: Supply/Demand 101:
a. How many properties are under contract? -- this shows buyers out there (demand)
b. How many Active listings – inventory (supply, or lack of)
c. How many sold in the past 3 months (identifies demand)
d. Selling above list price? = multiple contracts (high demand, low supply)
e. Average Days on the Market (DOM) – the longer it sits, the less demand
5. Discuss risk tolerance and Goals:
a. Each buyer has different levels of risk
1. Some love the sales game – others hate it
2. Some might be losing money, have a bottom line, or aren’t urgent to sell so might be willing to risk listing it at a higher price.
3. Others can’t stand showing, cleaning, and vacating the house and aren’t concerned about pinching every last penny.
4. Decide if you are ok with taking the risk of listing it too high and then having to reduce the price in 30 days (usually “NET” less in the end)
5. Don’t want to list too low – you can lose money if you only get one buyer that offers low
Discuss these items and agree TOGETHER – it’s not the Realtor’s money or risk tolerance, it’s Yours.
Also, use your 6th sense...
Feel out the agent if he/she is sugar coating it, rather than giving it to you straight. You’ll get that same service throughout the process (think negotiations, inspection issues, appraisal shortage, title issues, walk-thru items, etc).
Check out my other blog post on How to interview and Choose your Realtor: http://activerain.com/blogsview/4324612/how-to-interview-choose-the-best-listing-realtor-to-sell-my-home-