Putting a price on your home when you are ready to sell can be a challenging task in my opinion. There are several factors to consider when listing your home for sale. The first factor to consider are the solds in your neighborhood. If the Real Estate Agent has enough time it would be ideal to always see your home or property first so that she is able to tell whether or not to use a sold as a comparable for your home. Your agent should use sold comparables from the same exact neighborhood if possible that are similar to your home in year built range and square footage range. Sometimes it is not possible to find solds but in Austin, Texas we have a lot of activity so finding comparables is not a problem at all.
Your agent should also look at the expireds and the current actives in your neighborhood just to learn more. The solds are the most important because they show the actual price a buyer was willing to pay and what the home appraised for but looking at the expireds helps because sometimes they do not sell due to the sellers choice to over price the home. There may be other issues on why homes do not sell like marketing or a sellers unwillingness to negotiate but most of the time it is price.
After the expireds I look at all or any competition currently on the market that is similar to my subject property. If there are a few homes or none to compete with we are good to go and can price more aggressively but if there is a lot of homes that you have to compete with then you have to decide how soon do you want to sell or if you are willing to negotiate and be more flexible.
Condition is another factor we have to consider. Sometimes sellers do not have the ability, money or time to prepare a home before putting it on the market so when you are ready to sell your home you should understand that the condition determines the price as well. This is very hard for some sellers to understand because they are emotionally attached to the home and it is difficult to understand why the neighbors home sold for $30,000 more when they are the same square feet. It helps if the sellers put themselves in the buyers shoes when looking at their own home or maybe go visit other homes on the market and shop for yourself.
The last factor I want to talk about is seller motivation. This is a big factor in pricing as well because some sellers are willing to look at the solds that are given to them and consider the competition and accept that their home needs some upgrades and so they choose to price their home accordingly or similar to the ones that sold that also needed upgrades if there were any. However, there are also sellers that don’t care what the homes in their neighborhood sold for. They feel their home should be priced higher for various reasons and they are willing to wait as long as they can. It is the sellers choice and they can price their home where they want. The Real Estate Agent has to decide on whether to take that over priced listing or not knowing that it may never sell. If you are thinking of selling your home please do not hesitate to call. We love to talk and answer any questions!