How Realtors Determine List Price on a Home
If we lived in a perfect world, homes buyers would get a low sell price on their new home and the sellers would get a high price on the home they are selling. Unfortunately, though, we do not live in a perfect world. But that does not mean that satisfaction is not unattainable when it comes to selling your home. Therefore, it is crucial to get a realtor who is familiar with the home selling process and can help you reach satisfaction in selling your home.
Realtors use a number of factors when it comes to determining what price to list a home that is for sale. It is important for sellers to understand each of these factors so that you are a satisfied and informed seller.
In order to accurately price your home, your realtor will have to look at a combination of other properties within your neighborhood. They will look at home similar in comparison to the home that you are hoping to sell. The homes similar to yours in your neighborhood will fall into three categories: currently for sale, recently purchased, and those which failed to sell while listed. These three factors will assist your realtor in coming up with a fair, comparable price to list your home for.
Assuming the houses in the comparison are similar in size, features, amenities, etc., and were all recent transactions, the results can reveal an indisputable price range. Houses currently for sale reveal what the competing sellers are hoping to get for their investments. This also determines how competitive the seller wants to, or should be. It is important, also, to look at houses that failed to sell. These houses similar to yours failed to sell at a certain price range. Therefore, it would not be beneficial for you to try to sell at that same price range because it is likely the same thing would happen to you. If you price your house in that range or higher, it is not likely that your home will sell. Finally, houses sold show what buyers are willing to pay for a home in that particular neighborhood. This is the range that sellers should really only pay attention to because it is the only range that has proven to be successful in resulting in a sell.
Of course your realtor will use their tools and know-how to come up with a price that will sell your home. However, it is important for the seller to do their job as well. Truly, when it comes to selling your home, you will get out of it what you put into it. Flexibility is key when you have your home on the market. Additionally, it is important to be patient during the process. Your ability to be clear-headed and realistic throughout the pricing process can weigh heavily on the listing sales price and how quickly the property moves. You want to make sure that you are willing and able to make repairs, or changes to the home if your realtor recommends it. If you restrict showings, or do not keep the house looking pristine, you should expect a lower sell price.
These are a few ideas of how your realtor will come up with your sell price. Now that you are more familiar with the process, it is important to remember to trust your real estate agent. The key here is understand that in an ideal world you, along with your realtor, can determine a fair list price that buyers will be willing to pay.