How To Price A Home For Sale
One of the most difficult jobs as a real estate agent is to accurately price a property. If this were an easy task, then we would all know the precise value of each home and there would never be a question as to the accuracy of a list price. However, we all know this isn’t the case. What makes this job more difficult is the large percentage of agents who seduce sellers with an excessively high estimate in order to secure a listing. These are usually agents who are either new to the business or attempting to lure the seller with an exaggerated list price, only to reduce it over time. Sometimes this approach works, especially in a rising market. However, in a stagnant or declining market, it can backfire. A property that is priced too high will drift further away from selling and may require multiple reductions and a longer time on the market.
I recently evaluated a home on the 600 block of the Flats of Beverly Hills. When I compared the house to recent sales of similar lots and homes, I found some interesting results. In the previous 6 months, there were 6 houses that traded. The longest that any had been on the market was 35 days and the shortest was only on for 7 days. Even more enlightening was the fact that every one of these homes sold for more than the listing price while other homes remained in the market for several months.
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The answer to the price dilemma is that it’s rarely a mistake to price a home too low, as the market will drive the price to where it should be. Doing so will also garner a quicker and cleaner transaction.
Please, try to resist being seduced by the agent who gives you the highest evaluation of your home, as you are the one who will pay for their mistake.
