How do we price your home?
An in-depth “Comparative Market Analysis”
Here at Bixby Realty, we consider ourselves experts on the local real estate economy. We perform a scrupulous analysis of similar home sales in your neighborhood, and put together a pricing summary based upon real home values and market conditions.
These are some of the things we look at when reviewing comparable properties during our valuation of a home: similar home and lot size, proximity to desirable locations, condition of home, days on the market, and listing vs. sale price.
Choosing the right agent.
Most people have a friend or family member with a real estate license. While we appreciate these relationships, we have also seen first-hand how imperative it is to find a real estate agent who is a local expert.
You deserve an agent who will tell you the truth about the market value of your property rather than the high price you want to hear, and who knows how to get you top dollar for your home. In choosing the wrong agent you waste precious time, experience anger and frustration over the lack of activity, and eventually settle for less money on your sale.
Beware of false hopes.
Many sellers price their property incorrectly because they choose to list their property with the agent who quotes them the highest listing price. With some highly optimistic agents this may be an honest onetime mistake. Sadly, with many it is instead a common and deceptive practice which insiders call "Buying the Listing”. Do not fall into this trap of listening only to what you want to hear.
The team at Bixby Realty is dedicated to upholding the utmost integrity and will always tell you the truth, even if it’s hard to hear. We also hold ourselves to the highest level of competency, professionalism, and customer service.
A realistic pricing strategy can reap you the highest reward when you sell your home.
One goal when you’re selling your house is to get as much money as possible. It’s tempting to overprice- there’s always a chance you might score big, right? Technically, yes. But that doesn’t mean testing the market by setting your home’s price above what the house is worth is a good strategy. In fact, there are many reasons not to test the market this way.
If you price too high...
You won’t get offers (but nearby homes for sale will).
When you price too high, you’re helping sell the other homes in the neighborhood that are listed for less. After seeing your high-priced home, buyers may be eager to get the better-value house nearby — even if they liked your home better.
Statistics show that listing your home at 5% higher will divide your market of potential buyers in half. When you list it at 15% higher than market value, you will only have a 20% chance of selling.
People won’t even see your listing.
People generally set up search parameters by price when looking online for a home. Let’s say your house is worth $875,000, but you’re asking $915,000. You won’t capture buyers who search for houses within the $800,000 to $900,000 range.
Your house gets stale.
If your house is on the market longer than 30 days, new buyers wonder what's wrong with your house. Why has it been on the market for so long? What flaws did others see that made them pass up your list price? And here’s the real problem: When you do drop the price, you often get less for your house than if you offered a realistic price from the start.
A house that sits on the market for more than 30 days directly translates to a larger discount from list price to ultimate sales price. After three months of sitting on the market, you will see most houses lower the price.
The house won’t appraise at the high price.
In order for a home buyer to get a mortgage, their lender will require an appraisal. No matter how much you love your house, the appraiser may not see it with the same nostalgia. If comparable home sales over the last six months and current market conditions don’t support your sales price, the buyer’s appraisal may come in low and the transaction may fall through.
You lose credibility.
Buyers are savvy. They’ve usually done the research and have a ballpark idea of what homes in your neighborhood are worth. When you price too high sellers might not even look at your property.
You lose the chance to have a bidding war.
A common reason sellers price high is that it leaves room for negotiation. The problem with this tactic? If buyers overlook your house because it’s out of their budget, there will be no one to negotiate with. We have seen time and again that people with homes priced at (or even just below market value) often find themselves in a middle of a bidding war. This is basic human psychology - everyone wants a good deal.
Choose the right AGENT!
You must rely on your agent for accurate comparative sales statistics and pricing guidance. A good agent provides the facts to help you avoid the worst mistake you can make: overpricing.
Not all agents are good! The right asking price is critical to the success of your sale.