Determine The Listing Price
Posted on October 23, 2007 in the Real Estate category
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When it comes to buying a home, most potential buyers will use the listing price to as the number one factor to determine the homes that they look at. Even though you and a realtor may determine the asking price, the buyer will determine the selling price. If the price is too high, most buyers won’t give it a second thought – which is why you want to determine the listing price carefully.
If you set the correct price, you’ll notice a much faster sale. Setting the right listing price will also attract more potential buyers to your property as well. You’ll also notice an increase in response from realtors, and receive more calls about the property. The listing price is very important – and it can ultimately determine whether or not you sale your property.
A home can be overpriced due to several reasons. Overpricing is something you want to avoid, as buyers tend to steer clear of homes that have been overpriced. Normally, this happens when a buyer asks a lot more than the home is worth or valued at. Some buyers ask a lot more than the value of the home due to location. Although the location is very important, most potential buyers won’t give the home a second look if they think the price is too high – and more importantly out of their price range.
When you put your home up for sale, most activity will happen within the first couple of weeks. If you put the right price on your home, you’ll notice immediate interest. There are always buyers looking for homes in their price range, waiting for new homes to be listed or homes to be reduced in price. Buyers who are waiting to purchase may miss seeing your home completely if the price is too high.
To determine the listing price of your home, you should always have it appraised before you put it on the market. This way, you’ll know the full value of your home. You can sell it for market value or go a little under, although you should never attempt to go way over the value. In doing so, you’ll miss out on a lot of potential buyers. The home market is very competitive these days, which is why you want your home to draw as much interest as possible.
Keep in mind that realtors really have no control at all over the real estate market, only the plan behind marketing. Realtors don’t determine the asking price – the seller does. You can ask a realtor for advice, although you are the decider of your listing price. If you do things right and take each thing step by step, you’ll set the listing price in the right area and have no problems selling your property.
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13 Responses to “Determine The Listing Price”
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Now if I could only get my clients on the same page, that would be great.
This post made me read it all, it is very interesting because i am in this domain.Well, the listing price is, i think, the most important thing when you looking for a home, and if you find some cheap listing price i am sure you won’t be interested about it.
Does anyone know of any online home valuations tools that can also help in determining the price?
Thanks for the tip. That is something I will definitely keep in mind!
Great post. Another thing to consider is buyers agents set their clients up on email home searches according to what they can afford. If you play the game where you price your home high because you plan on coming down during negotiations, there’s a great chance that a potential buyer won’t even see your home on their automated searches because it doesn’t meet their price criteria.
I couldn’t agree more. It is SO important nowadays to price your home right from the beginning. The days of overpricing it and feeling out the market are over. Seller’s need to come to grips with reality and get aggressive about their listing price.
You are so right on this. In this market over price by even 5% can easily get you into a situation where you have to reduce by 10% or even 15% just to get the attention back to your home. The other thing that goes on here is if a house is totally updated and priced for that, it sells much faster and or a much better return than a home that has no updates or only some updates.
You make a very good point – I have heard both sides of the argument and have known agents to follow both strategies and on both sides there are successes and frustrations. You have a great blog and I look forward to visiting you again!
We see this same thing in rentals as well.
[...] Determine The Listing Price [...]
Dan – at to tools that determine the listing price – I’ll keep an eye out for you.
I know there is an Australian one here: http://www.homepriceguide.com.au/ where home values are actually computed for you based on a number of factors including the sale prices of other houses in the area. Haven’t seen a US equivalent though.
Excellent post. I always promote the “get your own appraisal” to all of my mortgage clients – mostly from the maintaining control of the appraisal as opposed to allowing the mortgage broker to own it. When someone lists their home a lot of times they are working with a broker already and the broker ends up owning the appraisal. That makes it harder for the home owner to change brokers if needed.
It is good to have a listing price so not to be overpriced, i agree with that, you have to be careful not to be overpriced. go in the middle price will be safe.