Staight Talk:
When selling real property, price, condition, and location are generally the three most important factors to consider when estimating a correct 'market price' for your home. Location really speaks for itself, here, let's visit the topic of Price.
It is generally accepted that a property is ultimately worth what someone is willing to pay for it, & not necessarily the price a Seller would like the property to fetch. Absent a ratified contract for the sale of a specific property, preceding thoughts on price are only estimates or opinions of value. An asking price is typically based on a Comparative Market Analysis (CMA), or on an appraisal, & both represent 'estimates' of the value of property at a given time and under specific circumstances, both parties may use different but related, or the same information sources to arrive at a 'selling price'.
Some Sellers elect to have a certified / licensed appraiser provide an appraisal before they place their property on the market. When estimating a property's value, many factors will be taken into account, including square footage, construction type, style & quality, the year the house was built, the design and floor plan (is it what's currently in vogue?) the surrounding neighborhood(s), availability of transportation, local shopping, schools, lot size, topography, view, landscaping, and any additions or improvements.
I will perform a comparative market analysis (CMA), usually prior to you listing your property. I will obtain data for several homes in your area that can be compared to your property; square footage, land area & characteristics, features and amenities, etc. This correlates your house to other very similar homes that have sold in your area. This is a free service as part of the listing process, and should provide you with a frame of reference with respect to accurately pricing your home.
It's important to realize that many times there is a 'Buyer's Agent' involved in the transaction, & they most often perform a similar CMA for the prospective Buyer (most likely using the very same MLS / MRIS data), and based on the results, would advise the Buyer on whether the property appears to be over-valued, undervalued, or appropriately priced. They will provide ranges of values where they think might be reasonable, well-received and successful, based on the buyer's own needs and circumstances. They can also provide their interpretation of the sellers situation, needs & motivations.
When determining a responsible listing price for your property, I can help you view your property as Buyers (and their agents) would. Regardless of property location, condition or features, it is important for a Seller to project the overall impression in the buyer's mind that their property represents a 'good value'. An overpriced property tends to discourage some Buyers from even touring a property, or worse, after touring a home with interest, decides to not even consider making an offer. Conversely, under-pricing a property can encourage some prospects to 'low ball' even further, since they may make unhelpful presumptions; are there significant problems with the property? Major repairs needed?, infestation?, contamination? or environmental concerns? Is the seller highly motivated, possibly even anxious, desperate, thus vulnerable to any offer that just 'gets them out' ?
The market is always changing, so it's important that an asking price is based on actual sold comparable properties, recent appraisals and/or a comparative market analysis. I can help you determine an asking price for your house, and make suggestions for you to position your property to be attractive to the broadest possible range of ready, willing & able Buyers. Expertly positioning your property by making it a clear value in the existing market is the 'gold key' to a successful sale. No amount of advertising, number of open houses, newspaper ads, broker's tours, direct mail pieces, directional signs, etc. can overcome the mistake of improper pricing, and market positioning when a property is first introduced to the buying public and other real estate professionals.
As a final note, be aware that you may receive some unexpectedly high 'estimates of value' and corresponding 'suggested list prices' from Others who may not understand the market and its dynamics, or may lead you to believe that they have an ability to bring a higher price. If a property is overpriced, after weeks or months of little or no interest/activity, a Seller may have to reduce the asking price to something closer to the actual market value (where it should have been priced in the first place). However, this typically means that the Seller would have lost the 'window of opportunity' or 'freshness' of a new listing on the market; they will have relinquished their best 'Ace' the position of strength of a new listing.
Further, after a listing becomes 'stale', other agents may disregard your overpriced property, and could be disinclined to show it to their coveted Buyers. Unless you're prepared to wait for the market to catch up to an elevated price, don't fall into the over pricing trap. (Did I mention that while you're waiting for the market to catch up, your expenses and mortgage payments continue - with no return in value?)
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