Susan Hilton College Station Real Estate
Realtor & Vice President of Sales of Bryan College Station Real Estate
Read my blog below
List Price or Agent – Is One More Important Than the Other?
April 25th, 2008 Categories: Market Trends, Selling
List Price or Agent? You need both!
Yes, choosing the right Realtor is very important as is setting the right listing price. It is a job both you and your agent must take to heart. Study the market using both past sales and properties that are currently available. It is as if you are trying to look into a crystal ball and find the price that is in line with the market and even a bit ahead of the curve – up or down. You want to price the home as high as possible to net you the maximum possible yet not pricing it so high that you are out of line with the market and therefore miss the opportunity to sell and you end up being behind the curve and “chasing the price down”. Pricing the propety RIGHT will help you catch the attention of potential buyers and help you meet your sales price goals.
Is there a perfect price for selling your home? No – But, there is a process that you should use to be as close to that “perfect list price” as possible.
What is the first step in setting the listing price? Research! Research the sales prices of comparable properties that have sold within the last 6 months. If you are in a declining market, 6 months may be too far back to use for pricing today but having all the data will allow you to see trends. Use properties that are similar in age, square footage and amenities. Look at the prices properties sold for but also the prices the properties were originally listed for. Were the prices dropped during the listing term? Were the sales prices less than the list price? If so, by how much?
Does list price really matter when what a seller REALLY cares about is how much they will get at closing? Yes! Listing too high will rule out a large number of buyers. Buyers look at the list price before they even decide if they are going to view the property and consider it for purchase.
Is listing high and dropping the price a wise choice? Not usually – It is far better to price a property correctly the first time than pricing it high and over time reducing the price. Reducing the price often makes the property appear to be “distressed” or desperate. When properties are priced correctly the first time many buyers and agents become aware and show interest right away. Setting a listing price too high and then leaving the property on the market for an extended period of time allows the property to become shop worn and buyers begin to wonder what is wrong with the property. Sales prices then go down….
Although the list price is set by the seller, the sales price is actually set by the buyer. Buyers will only pay what is “reasonable” compared to other properties on the market. It does not really matter much what you paid for the property – what matters is what a buyer will actually pay.
I like your blog! I often hear from my clients ( I am Toronto real estate agent) that “we should price it much higher, maybe somebody takes it, if not, we can lower the price later!” And it’s really hard to persue them not to make it. Lowering the price is not so easy and it always does some market “damage” to that property…