Sellers are coming to me really excited about the price that we’re going to put on their house. They ask immediately, “What do we get to list it at?” A lot of times the sellers will have a number in mind, sometimes its realistic, sometimes it’s not. I’m here to tell you how we realtors and appraisers arrive at that recommended value.
- Subdivision, Style, Square Footage
First we look at the subdivision. We typically will not go outside of an immediate neighborhood community until it’s a unique situation like an acreage. Next, we’re going to look at the style of your home, we won’t compare a ranch to a two story, we won’t compare a split entry to a multi level.
Then we have the above grade finished square footage. Now I know what’s going through your head right now: “What about the basement? It’s finished!” Basements are worth something but not near as much as what’s on the main level and above it.
It’s important but it’s not as important as one would think. A lot of times people will say to me, “I live in this wonderful Celebrity home and I’ve just done so much work to it!” I believe them! They might have granite counter tops, top of the line flooring, etc. Unfortunately an appraiser is not going to give them as much credit as what they spent on improving that home in that subdivision. Remember, subdivision, style, and square footage above grade are the three major components that need to be looked at.
- Get 2-3 Opinions
The other thing that you need to consider when price positioning your home, get 2 or 3 opinions. I love being just one of the realtors that is interviewed, because I feel confident that if you feel we’re a good fit, we’re going to have a successful journey together. So get 2 or 3 opinions on what the price position should be. However, don’t just go with the realtor that sets the highest dollar amount. When you’re interviewing, remember these few things:
- The agent needs to come prepared with data to support what they are claiming.
- You need to feel comfortable with them.
- Make sure they have great marketing program.
Don’t just go with the realtor that gives you the highest price, because some people will say anything just to get that sign in your yard. You get one shot to make a great first impression. Here’s the way this works: Buyers want what is hot and new. So we have people taking off work and driving in from out of town to be the first in a new property. When they walk through your home, they need to feel like: “Wow! This is really priced well, this is going to go TODAY, I better make a full price offer or it’s not going to be mine.” They need to feel that sense of urgency.
If you choose to price your home in an average mode, you can expect to achieve 97-98% of it’s value .
If you over price your home you’ll know it in the first week or two of it being on the market. If they feel like your home is overpriced they’ll either never come in the door (because their first screening process is online) or they do come in but they don’t give an offer because it’s priced too high and they never come back.
This week’s quote to commit to is: Pigs get fat, hogs get slaughtered.
As always, my prayer for is that you not just dream about the life that you’ve imagined. But that today, you to take the first step, and then the next, towards making it happen.