Overpriced, Underpriced or Just Right??

By
Real Estate Agent with RE/MAX Elite 513.520.5305 www.LizTour.com SAL.2002007747

getting the right amount of money Pricing a home for sale is a bit science, a bit art.  If it was pure science those online valuation sites would be a lot nearer to the truth with their estimates, but instead it's not uncommon for those automated valuations to off by tens of thousands of dollars (or even worse).

And frankly not every agent is on target with their pricing skills, or perhaps it's just a case of going with the seller's price to get hired.  I know this might seem a bit cynical, but when you've seen it done enough times, even had the listing agent tell you they're using the seller's price, well.....

There are obviously a LOT of factors that go into determining a home's value.  There's the obvious stuff like number of bedrooms, bathrooms, lot size and garage spaces.  And some things aren't as apparent (a home's updates, what's upwind, area noises, etc.).  And some things can be "factual" but not as relevant as you might think.  Two different houses with the exact same square footage can feel entirely different based on layout and openness.

So basically your home's pricing can be in one of three categories:

1.  Overpriced.  And we see this regularly, especially during times with a shortage of inventory.  Supply and demand, grab for the most dollars possible, right?  But overshoot what the market will bear and the public will either ignore the home entirely, be afraid of insulting the seller with a "low" offer, or the home will be competing with homes truly worth that same dollar amount and lose out.  Overshooting market value MIGHT get you a buyer willing to overpay, but the likely outcome is months and months on the market waiting.

2.  Underpriced.  Well here's the good news:  you're not going to be on the market long.  You might not even realize you were underpriced!  And if you're lucky, your home gets in a bidding war and you go well over asking...all the way to what you should have gotten if your home was priced right initially.

3.  Priced right.  Unless you're in a HUGE hurry to sell, this is where you want your home positioned.  Getting in the right price range is the compromise that gets you sold in a reasonable amount of time and for a fair amount of money. 

 

Want to talk about Warren County Ohio home buying and selling?  Call or email us, 513-520-5305 or Liz@LizSpear.com.

Liz And Bill aka BLiz

 

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Serving Warren County Ohio & Adjacent Areas

 

The Liz Spear Team of RE/MAX Elite
Elizabeth Spear, ABR, CRS, Ohio License SAL.2002007747

William (Bill) Spear, CRS, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

Search Homes:  Https://WarrenCountyOhioRealEstate.com

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Ambassador
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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It is a fine line to get in the "just right" price range, but it's one that was Realtors we must do out best to make happen!

Jul 26, 2017 03:42 PM #1
Rainer
44,273
shirley cicero
Continental West Realty - Livermore, CO
Northern Colorado Mountain Homes and Vacant Land

Yes, you are right! The seller thinks they can get a higher price because "it's the market" and I always explain to them unless they are willing to have their home sit longer, look like something is wrong with it or take the chance of the appraisal not coming in the decision to overprice it shouldn't be made lightly. 

Jul 26, 2017 04:20 PM #2
Rainmaker
1,544,033
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I know an agent who believes in underpricing as a way to start bidding wars and end up with a selling price at the top of the market. She says it works for her.

Jul 26, 2017 09:52 PM #3
Rainmaker
3,209,384
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bill I am all about what the client wants with the exception of Overpricing , I do not mind underpricing or pricing it right but if they want to over price, I move on... keeping in mind I spend close to two to three thousand dollars the first two weeks of the listing and that is my money... I do not buy listings i.e.: over priced ones...Endre

Jul 26, 2017 10:19 PM #4
Rainmaker
760,844
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

Well said...I see this topic coming on another blog in the near future. (wink)

Jul 27, 2017 01:55 PM #5
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Bill - Very informative explanation. As an economist, it pains me a bit to admit to the "art" component of home pricing, but it is, in fact, a very important part of coming up with the right number. Once you have all the data assembled, knowing what to do with it - and where to plug in those in- and semi-tangibles does bring experience and feel into the equation.

Jul 27, 2017 02:09 PM #6
Rainmaker
408,857
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

We all know that homes prices "right" provide for the best potential profit for the seller at the best time frame.  Great blog!

Jul 27, 2017 09:44 PM #7
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