Pricing is the key
January 17, 2007
So you've decided to sell your home. There are many factors that influence the sale of a particular property. Condition, marketing and pricing all play a role. In the fast paced and frenetic markets of 2004 and 2005, many buyers accepted the condition and the price in order to make a purchase. Real estate agents did not need a great marketing plan. Properties went into escrow within a day or two of coming on the market.
But times change and sellers who want their property to sell need to call a professional real estate agent and listen to the expertise of those who are best informed as to local real estate market conditions.
Overpricing will get you nowhere in today's market. Buyers are well aware that prices are soft and they are being told consistently to be wary. So how does one best determine the highest possible price that is obtainable for a particular property?
Start with the closed transactions of the past 4 months. To quote what a neighbor's property sold for a year ago is no longer relevant in the present market. A good agent will look at what is currently for sale (your competition), what has entered escrow (what buyers are choosing), what has closed escrow ( what price the seller actually received) and expireds(what no buyer thought was good market value).
In recent times, Sellers, Buyers and Real Estate agents have compared properties based on the price per square foot of each sale. This is one measure, but an unreliable indicator of the value of a partiuclar property . It will tell you that if the average price per square foot in your area is $275. and you want to list at $300, you have probably exceeded the potential buyers' limits.
After 30 years as a real estate agent, I firmly believe that pricing is the key to a successful transaction. Go over the comparable properties and be very realistic.
So you've decided to sell your home. There are many factors that influence the sale of a particular property. Condition, marketing and pricing all play a role. In the fast paced and frenetic markets of 2004 and 2005, many buyers accepted the condition and the price in order to make a purchase. Real estate agents did not need a great marketing plan. Properties went into escrow within a day or two of coming on the market.
But times change and sellers who want their property to sell need to call a professional real estate agent and listen to the expertise of those who are best informed as to local real estate market conditions.
Overpricing will get you nowhere in today's market. Buyers are well aware that prices are soft and they are being told consistently to be wary. So how does one best determine the highest possible price that is obtainable for a particular property?
Start with the closed transactions of the past 4 months. To quote what a neighbor's property sold for a year ago is no longer relevant in the present market. A good agent will look at what is currently for sale (your competition), what has entered escrow (what buyers are choosing), what has closed escrow ( what price the seller actually received) and expireds(what no buyer thought was good market value).
In recent times, Sellers, Buyers and Real Estate agents have compared properties based on the price per square foot of each sale. This is one measure, but an unreliable indicator of the value of a partiuclar property . It will tell you that if the average price per square foot in your area is $275. and you want to list at $300, you have probably exceeded the potential buyers' limits.
After 30 years as a real estate agent, I firmly believe that pricing is the key to a successful transaction. Go over the comparable properties and be very realistic.
posted by shirley harry at 8:53 AM
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