You have decided to list your home, but you look around your neighborhood and know that your home is one of a kind. The question now is: How do you price that unique property?
Pricing is an exact science, but strategic pricing is an art. That's why you should entrust this function to someone who will accurately price your home, whether it's a buyer's or a seller's market. Prior to jumping in with the first agent you call, why not invite a few more over and see each of their listing presentations and hear their individual strategies.
A good agent knows that pricing strategies depend on many factors; what works for one home may not work for another.
In a seller's market, your agent might recommend pricing to encourage multiple offers. However, this will depend on the neighborhood and on the home's value. The best candidate for this strategy is a well-maintained home in a desirable area where inventory is low. In this situation, the listing price will likely be at the lower end of a price range that reflects the home's fair market value to encourage competing offers.
In a buyer's market, the factors influencing price are the same - the neighborhood and the value of the home - but the strategy is very different. Here it's all about demand and competition. Your home is in direct competition with others for sale in your neighborhood, and it should be priced to compare favorably. It also should be in top condition, and your agent may recommend fix-ups and staging to highlight its attributes.
Your agent will also look for trends. If properties in your area consistently sell below asking price, prepare for offers below the listing price and expect to have to adjust, particularly if you're in a hurry to sell.
Whatever the market, a well-thought-out pricing strategy can make the difference between selling quickly at a fair price and sitting on the market with an overpriced property.
It's worth getting it right the first time.
Realtor at Century 21 Adobe Realty
DRE License #00690066
(818) 879-1888 cell
(818) 874-1234 home office
email me at Pambi@Century21.com
Century 21 Adobe Realty
5627 Kanan Road
Agoura Hills, CA 91301