One of the most important conversations between sellers and their realtor is how much they are going to list their home for when they put it on the market. Ultimately, it comes down to the listing price for sellers. They want the best return on investment and they expect their realtor to get it for them.
A common misconception is that realtors will put out a number from thin air as to what to list a home as. That just simply is not true. Through research, getting to know the seller’s wants and needs, and analyzing the market, realtors are able to come up with a listing price that makes sense for the home in the current market.
The Seller’s Wants and Needs
The listing price can depend on the wants and needs of the seller of the home. Of course the seller wants top dollar for the home they lived in, made memories in, and cherished. However, if they are in a time crunch to sell their home due to a promotion or maybe a new baby on the way and they need to upgrade, the realtor may suggest that the listing price is lower than the seller expected. If the seller has some time to sell their home and have no rush, then it can sit on the market for a few weeks with a little higher listing price.
When a realtor comes to a listing consultation, they will ask for a tour of the house. This allows them to get a feel for the condition it is in. You wouldn’t want to buy a shirt at retail price if it was missing a button, right? If the home needs some minor, or even major, repairs done, then that will affect the listing price. If you are willing to spend some extra money and make the repairs yourself, then you may be able to price it higher.
Comparative Market Analysis
This is the research that will help your realtor come up with a ballpark price for your home. After researching the price of comparable properties on the market in your area and what comparable properties had sold for, your realtor is able to come up with a number of where to start the listing price.
Test the Market
If there is some disagreement between you and your realtor about the listing price, your realtor may want to test the market. You will decide on a price to list your home and see how the market reacts. If there are absolutely no showings within the first week, the listing price is most likely too high. Maybe there are some showings, but no offers, the price may be reasonable, but a little too high. There might just be multiple offers on the house, the price may be a little low. It’s all about testing the market and fluctuating the price in order to sell the house.
It’s a good thing Agent Lady does her research, comparative market analyses, talks to her sellers, and is willing to test the market when she lists a home to sell. If you’re looking to sell your home, give the Agent Lady a call for a free listing consultation where she can come up with a realistic listing price for you.