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Orange Slice, Other/Just Looking in Cherry Hill, NJ

My realtor wants me to price lower than I think I should. Is this my call or hers?

Asked by Orange Slice, Cherry Hill, NJ Wed Jul 16, 2008

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Today is a much different market place then it was during the boom years. No matter how you market you home today it all boils down to having it priced right. So how do you price your home to sell?

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 “right” 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 buyer’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 planner’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 today’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.
1 vote Thank Flag Link Mon Jul 28, 2008
Dave,

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.
0 votes Thank Flag Link Mon Jul 28, 2008
You own the house - your call.

Your agent should provide you with all the information to make a decision.
0 votes Thank Flag Link Mon Jul 28, 2008
It's your call. Your Realtor probably ran a CMA (competitive market analysis), on which she based her recommendation. She probably shared the CMA with you. If she didn't ask her to do so, and to explain the basis of her recommendation.

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.
0 votes Thank Flag Link Wed Jul 16, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Orange
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.
0 votes Thank Flag Link Wed Jul 16, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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As Always, it is your call. I tell my clients that they are my boss but they hired me for my expertise just as bosses in big companies do. They have the final word but should want to strong consider my advise. That is what they pay me for. If your agent is experienced and has had much success in your area, I'd take her advice. If you feel that she is not experienced enough or that she just "stuck the sign out and went away" then you might reconsider your thoughts.
0 votes Thank Flag Link Wed Jul 16, 2008
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