First a reality check; you have to remove your emotion from the equation. Remember it is business and prospective buyers are not concerned that you put your blood sweat and tears into your home. Also, many times a realtor is also emotionally attached to a price for your home because their reputation and commission is based on it. A recommendation that we have been providing to our clients for years is to order a bank appraisal.
One of the most accurate measures to come up with the â€œrightâ€ listing price is to have a mortgage appraiser do a true valuation of your property. This takes all emotion out of the equation from you as well as a prospective realtor. It is a stark objective view that the eventual buyerâ€™s mortgage lender will undertake so you might as well get it out of the way before you list the home. The expense of a few hundred dollars is easily offset by positioning the house to sell at its current market value. If you have a mortgage planner that you have used in the past or plan to use for your new purchase you may be able to save a little on the cost by using your mortgage plannerâ€™s appraiser. Since they are in the business of ordering these regularly they usually have a discounted price arrangement.
We find that sellers that follow this advice and put their property on the market a few thousand over this appraised value are selling in 30 days or so; even in todayâ€™s market. Bottom line; price your home at a level that will create competition among buyers and watch it sell quickly.
About the author: Dave Muti, JD, RMA is the author of Mortgages: What You Need to Know and a Senior Mortgage Planner with Millenium Home Mortgage, LLC located in Parsippany, New Jersey.
Nto so sure that I concur with your approach 100%.
True, you can price at appraised value, but that begets another discussion - how do you find a good appraiser - they, like everyone in the real estate business-scape - can be hit or miss.
I think that this opinon of value, combined with some local and expert knowledge of the other homes in the area - the comptition, is the best place to price the homke so as not to leave money on the table.
If you drop it low enough, of course it will sell - but we want sellers to maximise their equity also.
It is a fine balance.
As Keith notes, there are also different strategies, even after you've done a CMA. So, make sure you discuss that with your Realtor, as well. Once you've done all that--become familiar with the comps and your Realtor's suggested strategy (as well as marketing program, etc.)--you'll be in a good position to decide on a price.
Hope that helps.
Did you look at comparable properties?
In most cases sellers think there home is worth more than it is. Part of human nature.
Remember that the listing price is sales tool. Pricing a listing too high in most markets will hurt you.
I was just looking at a property that sold today. It was listed for $509K, sold for $550K. If they had listed it at $560K I don't think they would have gotten $550K, The probably had multiple offers....
So invest the time, go look at the properties competing with yours. Remember that the market will not let your home sell for less than market value.