3 Keys to Pricing a Home Right

Price can be a sensitive issue for many sellers. It’s natural for homeowners to grow attached to their homes. After all, it’s the setting for many of their memories. Since the decision to put one’s home on the market is such an emotional process, the topic of how to price it often becomes a sensitive issue.

While some sellers may get hung up in how much their neighbor’s home sold for or in the costs associated with their kitchen remodel, other sellers may focus on the emotional aspects selling rather than view it as what it is: a business transaction. Agreeing on a price may be tricky; however, if you use your knowledge and experience as a real estate professional, you can put your buyers at ease and set a competitive price for the home that your sellers will be happy with and the market will bear. Here’s how:

1. Show your sellers recent market statistics. Before dropping the “P bomb,” give your sellers an overview of the national and local markets. Explain how much homes are selling for in your local market and in the neighborhood, how long they’re on the market for and the percentage difference between the listing price and sales price. This will give your sellers an idea of what to expect when it comes to listing their home on the market.

2. Explain the factors that go into setting the home price. Setting a price involves more than just the value of the home; it also includes the quality of the neighborhood, how much other comparable homes are selling for, and the value of any renovations, among other things. Plus, the real estate market is always changing. Although the neighbor’s home may have sold for $10,000 above list price after entertaining five competitive bids last year, the landscape may have changed as more homes entered the market. Discussing the factors that go into a price will help you to explain why you’ve suggested the price you did.

3. Set expectations with your sellers. Frustrations arise when expectations are fuzzy. By explaining the nature of the market and how you arrived at a listing price, you help to manage their expectations. By maintaining steady contact with them throughout the process, you ensure that you address any concerns before they become bigger problems. Referral Maker® real estate CRM can help you keep in touch with your sellers on a regular basis, track your communication with them and even send their listing to potential buyers in your database. Visit Referral Maker for more information and to start your 30-day free trial.