Jpcwood, Home Seller in Mountain Lakes, NJ

The Trulia estimate seems fair -- Can this be used as a listing price, or should I increase it 5-10% knowing that buyers want to haggle?

Asked by Jpcwood, Mountain Lakes, NJ Fri Jun 8, 2012

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LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote Thank Flag Link Fri Jun 8, 2012
Hi,
Realtors get this question often when potential sellers refer to automated estimates they can get off of websites. My advice to you is to invite me in to give you a complimentary market analysis. An experienced realtor will give you the picture of the current marketplace, provide you a personalized marketing plan and give you the best idea of what your home can sell for.
The algorithms used in these boiler plate programs are no substitute for a professional who sees all the inventory and knows where your home would stand in the market and what has recently sold and how it would impact your sale.
Please call on me if you would like to consider using a top Realtor in your area to represent you. I'd be happy to discuss your home in detail.
Lynda
0 votes Thank Flag Link Fri Jun 8, 2012
You should get a Comparative Market Analysis from a realtor based on the most current sales data and price your home 1-2% below what the data indicates the asking price should be. Most homes sell for about 95% or asking price or better and, if priced correctly, within the first couple of weeks. Increasing your asking price to account for 'haggling' is really self defeating.
0 votes Thank Flag Link Fri Jun 8, 2012
Computer estimates have their value and place, but not when listing your home to sell. In this market, there are many outliers and variables. Homes range from "value is in the land, building condemned" to luxury homes. A computer will never be able to walk through your home to see your cherry cabinets and silestone countertops or marble floor entry. A computer will never understand that your unfinished basement can be finished and usable space for less than $100. A home is like a person, how would you know the person unless you meet them?

Now, factor in that while sales are just beginning to pick up, home prices in June in Mt. Lakes increased 1.11% but, back in February they declined 17.78%. (See http://www.randolph-chester-homes.com/mimarket/zip/07046/ for statistics) How are you going to price your home to sell?

Envision this, a buyer is looking at a list of homes with their agent. The list is divided into thirds. The top listed homes are great homes at or below market price, the middle are just above market, and the bottom third are great homes but overpriced by 5-10%. Where do you want your buyer to find you?

Even in this market, homes priced well have received multiple offers. It still happens.

I know Mt. Lakes very well. My previous broker's office was located there so it was like my backyard. If you feel I can help you establish he best price possible for a quick sale, feel free to contact me. I'd also like to share some great resource marketing material with you.
0 votes Thank Flag Link Fri Jun 8, 2012
Computer estimates have their value and place, but not when listing your home to sell. In this market, there are many outliers and variables. Homes range from "value is in the land, building condemned" to luxury homes. A computer will never be able to walk through your home to see your cherry cabinets and silestone countertops or marble floor entry. A computer will never understand that your unfinished basement can be finished and usable space for less than $100. A home is like a person, how would you know the person unless you meet them?

Now, factor in that while sales are just beginning to pick up, home prices in June in Mt. Lakes increased 1.11% but, back in February they declined 17.78%. (See http://www.randolph-chester-homes.com/mimarket/zip/07046/ for statistics) How are you going to price your home to sell?

Envision this, a buyer is looking at a list of homes with their agent. The list is divided into thirds. The top listed homes are great homes at or below market price, the middle are just above market, and the bottom third are great homes but overpriced by 5-10%. Where do you want your buyer to find you?

Even in this market, homes priced well have received multiple offers. It still happens.

I know Mt. Lakes very well. My previous broker's office was located there so it was like my backyard. If you feel I can help you establish he best price possible for a quick sale, feel free to contact me. I'd also like to share some great resource marketing material with you.
0 votes Thank Flag Link Fri Jun 8, 2012
I'm in the area and would be happy to do a Comparative Market Analysis on your property....let me know! :)
0 votes Thank Flag Link Fri Jun 8, 2012
Pricing your home 5 to 10% above market is not a good idea.
0 votes Thank Flag Link Fri Jun 8, 2012
throw out any estimate that was generated by a computer. You need to see smell and hear subject and comparable homes. Then have a professional adjust and explain to you the logic involved. Bottom line is motivation and market conditions that exist right now,
0 votes Thank Flag Link Fri Jun 8, 2012
Jpc,

How about asking a Realtor to do a market analysis and then list your home, and give you the proper pricing stategy for your particular area? The market is SOOO local right now you really need someone who knows what the area, what's selling and at what price, to price it right (among other things) so it sells.

Realtors are the experts in pricing, marketing, and sellling homes. We do all the work for you....staging, advertising & marketing (out if pocket $$) , open houses, negotiating the contract, making sure buyers are qualified, aiding during the attorney review and inspection processes, keeping you AND the buyers on schedule with contract contingency dates making sure you have all the legally required paperwork signed, helping you obtain any municipal certificates you may need to close and so much more.

Do you REALLY want to field phone calls, keep track of showings, sit home on weekends showing your home to potential buyers (who may or may not be qualified), THEN go through the entire process from contract to close without some professional guidance, expertise and knowledge?

.
0 votes Thank Flag Link Fri Jun 8, 2012
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