A while ago, I wanted to sell my 1984 Corvette, with 36,000 miles, in excellent condition, for somewhere around $12,500. After all, I know what I paid for it and I wanted to break even.
After too many months, I sold that car for about $10,000.
Many homeowners make the same mistake that I did. They set their list price based upon what they paid for their home or what they want to get for their home so they can move into another home. But if a home is priced too high, some potential buyers won’t even look at it, others might walk away without making an offer, and some might never know the home is for sale.
When pricing a home, the simple truth is that a home is only worth what the market will bear. Too often, real estate agents go with the seller’s estimates (because they want to get the listing with the hopes of lowering the price).
Less often, agents refuse the listing, rather than overprice the home and have it sit around without any showings or offers.
All I can say is, “Sellers, beware.” Don’t choose a real estate agent just because he or she suggests the highest price for your property.
Instead, choose the Realtor who provides the best comparative market analysis (CMA) and explanation of how your home should be priced so that it sells. Look for a recommended price range that the agent will firmly stand behind.
The CMA should include an analysis of the homes and prices that are currently on the market that will compete with your home. This is very important, as that is how folks buy homes today.
Other data used to support the price range include: house features, property condition, and location. A review of homes sold, expired or canceled is also of value.
In addition to the CMA, rely on your real estate agent’s experience and expertise as relates to your local market. That proven professional will be able to give you a good idea of your home’s market value and how to best price your home.
Larry Stoller is a broker-owner and Realtor with Real Estate Five of the Lowcountry. Larry@RealEstateFive.com or www.RealEstateFive.com