Price is THE most important selling factor for any property.
For each of my listings I conduct a very thorough market and price analysis for my clients. I am looking for that balance between a price that will excite the market and yield multiple offers and a maximum sales price. When the market works, it works extremely efficiently. Priced too high? The market will wait for the seller to get realistic. Priced too low? The market recognizes a bargain and bids it up. Priced just right? The seller will get one offer, maybe a few, at that asking price. That’s the end result, but how to determine the “just right” price?
Pricing is an art, not a science. It would be great to use Zillow to get the number, but that’s not how it works. We need to account for market conditions and trends, the property’s floor plan and appeal, the way that it shows (like a model is what I aim for), and how well the property is marketed so that a seller gets maximum exposure and top dollar.
These are the important market data points to consider in pricing:
- the competition, priced plus or minus $50k around the sellers anticipated price. I consider all active listings to determine which of those my sellers’ property can “beat” and where it would be “beaten” by the competition to see where we could end up on the pricing continuum, including a personal visit to all the competition to understand how the client’s listing will be perceived by buyers that will also look at these other properties
- analyze the recent “withdrawn” and “expired” listings to see what has not sold and why
- conduct a thorough price analysis in the same way that an appraiser will do when brought in by the buyer’s lender to support (or not) the value.