Any agent who wants to price your home without looking at it should be removed from your short list asap.
Market research will determine where you should price your home. The numbers don't lie.
Once again, market research will tell you what the percentage of listing price to selling price is in your area for your type home. In the Hilton Head Island, SC area where I am, last year it was 94% of the asking price was what the selling price was. In 2006, it was 96%.
Tell your agents to do their homework and give you good intel so you can make an intelligent decision on selling your home. Good luck.
Bill Brannon, Hilton Head Island, SC
If the houses are not exactly alike (and no two are), the Realtor should be making adjustments so they are comparable, just as an appraiser would.
No matter how wonderful your house is, you are a prisoner of your area and recent sales. No matter how much you get a buyer to pay for the house, if it does not appraise, the buyer will not get the mortgage.
Well we were all acused of driving prices up by encouraging overbiddign so we might as well be guilty for calling the party off and giving all of us a pay cut! Actually I think in some areas Realtor/Licensees just DON'T KNOW where prices are going. Back in August before the credit crunch, this is a mere 4 months back, I could safely give you a price point range within 5%. Today? With the flood of REO's, Short-Sales out there, who knows, 10-30%? I sold a home six blocks from one I have on the market today. The sold comp wasa 1750 square feet, single level, cul-de-sac, staged to the tees, I now have a property, 2330 sqft, stunning traditional on a cul-de-sac, custom features, listed at what the comp sold for 4 months ago and I'm advising the client to reduce it $50,000 to generate an offer! No--I don't think we are driving prices down we just don't know where they are at! Even the REO agents are butting heads over price. One lists a model at $389,000 ($150,000 below what it sold for 2 years ago) and another REO agent lists the same model for $289,000 arond the corner. Go figure! If you have an area where 4-sale signs liter the landscape chances are price is going to be the sold determinate for a sale. Time will tell. I'll make the bold statement that prices will either go down, remain the same or go up. Edgy huh!?
I don't feel that agents are driving the prices down further to push sales per say. Many market places are saturated with listings and have much more "supply" than "demand". This increased competition among Sellers can cause many price reductions to occur. This is what tends to drive the prices down.
On the other hand, an agent should never give you a solid opinion of market value without visually inspecting your home first. They may be able to estimate based on some information they gather from you verbally, but cannot come up with an accurate answer until they see things like location, condition, upgrades, etc.
It is possible that a 3 bedroom home in pristine condition could sell for more than a 4-5 bedroom home that needs a lot of work. Location can play a key factor as well. Your agent should be showing you homes that are as close to yours in features and location as possible, making adjustments for differences along the way.
My first suggestion to you is to interview more than one real estate professional and preferably from different companies. There are so many variables when it comes to an agent's experience and work ethic. You should ask them to explain and demonstrate how they came up with their suggested price by showing you the comparable sales that they come up with. You should also ask them about what services they will provide. Especially, be sure that they are up to date with internet marketing. Although most Sellers still want print advertising, many Buyers begin their search on the internet. Take a look at some of the other homes they have listed so you can see the kind of job they do.
In most areas today, strategic pricing is important. It is not really a good time to "test the waters" with a high price. It will only waste your time and money as well as your Realtor's. Go with what the statistics show. The numbers don't lie. Also, be aware that homes are generally staying on the market longer now, so try to be patient.
Once you've chosen someone you are comfortable with, I feel that if you price it right, make it easy to show, and offer a competitive commission, you'll be successful in selling your home.
I belong to Leading Real Estate Companies of the World and if you'd like me to refer you to a reputable agent in your area, I'd be happy to. Fell free to contact me at JanetLevy@JanetLevy.com or at (609) 693-9126 Ext. 18. I wish you the best of luck with your home sale!
Crossroads Realty/Lacey Office
Seriously Angelo, I don't know where you're finding these realtors that don't even look at your interior and tell you how much your house is going to sell for. Realtors definitely bring a list of all the sold homes with them, but then they should educate you about what the market is like, and then YOU should figure out where to list your house using that data. We all have the same data. By "all" I mean every realtor, and BUYER, so it would behoove you to study it before you put a price on your home. I would love to help you out but I have a feeling you are disingenuous.
I understand 85% of home sales are generated by interest first developed by a listing with pictures on the internet. Realtors generate just 15% of home sales direct. Show the house yourself. Who needs these commission earning, in many cases amateur people at all. Yeah they run an open house for the gang of other in town realtors who can eat bagles and scoff at your decor whilst yiur at work, but your home just one of the hundreds of products that they can choose to try to sell for a fat commission however to you it is your largest asset
Realtors cannot earn a living when only a single house a month is selling in Southampton, or East Hampton, or Sag Harbor. And this is about the rate at which they are selling. Instead of the more typical twenty five a month.
Basically the Hampton's market has stopped and there will have to be a 35% downward correction, as seen in FL and CA among others, in order to get the market moving again. Keep in mind this is a correction from a circa 2004 purchase, not the asking.