Want to price a home correctly? You have 3 opportunities…
There are plenty of strategies and “pretty little” websites out there that give you a general idea of a home’s value. In fact, I also use Market Snapshots to help a seller or buyer in gauging the market value of properties at a given time. That’s right a market snapshot is a snapshot of market value at a certain day or time. You can subscribe to my market snapshot service which is accurately based on MLS data (click here for a link to see what the property is Worth). But you need to drill down from that tool to get a more comprehensive market analysis (CMA).
But there a few unanswered questions...
Frankly to sellers I ask…Want to price your home to sell? First you need to sell the price of the home. Read down below for more info.
To buyers who are considering making an offer on a home I ask…Do you want the home? Make your best offer quickly so that someone else does not get the keys. Knowing which price will satisfy all parties to the transactions is the answer. I can help you.
But for now, here’s my strategy. As I mentioned a seller needs to price the home to sell, yet first needs to sell the price. Your opportunity to sell #1…Sell the price to an agent. Statistics have proven that most buyers are represented by real estate agents. Your opportunity to sell #2…Sell the price to the buyer. If it’s over priced, you are wasting everyone’s time. Your opportunity to sell #3…Remember that you are also selling the price to the buyer’s lender and keep in mind that lenders have appraisers who verify that the price is in line with market values.
You are beginning to get the point…there are many reasons why you need to sell the price of the home. That’s because there are so many people that you are dealing with. And all those people use MLS data such as active listings, pending listings and sold home listings. Agents and Appraisers use Public Records, Realtor MLS Data and other Industry Tool sets. On the internet, there is a plethora of cool “pretty” sites such as Zillow, Trulia, etc. When asked to get a very accurate drill down of a home’s current value I like to average these internet reports on one hand and then compare the results to the tools that only a Realtor can provide, such as the MLS comprehensive market analysis.
All the reports will show a high price, median price and low price. Sellers need to determine how much they can sell in a reasonable amount of time. Yes, you can shoot for the stars and attempt to sell a property for more than it’s Worth. But it will take a long time for it to sell. Or, you can price it very low, sell the home in one day and lose the equity that you may deserve. Sellers need to understand that they need to pick the range where they would get the best price in the shortest amount of time. That is if they really want to sell.
Buyers need to understand that they should make the best offer that will satisfy the sellers, their agents and the lender’s appraiser.