Home Selling in 20852>Question Details

Bernadette, Both Buyer and Seller in Maryland

What are the advantages/disadvantages for listing the home slightly above the market value OR slightly below the market value?

Asked by Bernadette, Maryland Sat May 26, 2012

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Under the present market conditions I would suggest pricing your home just "slightly" under the market value of the home. Depending on your home style and the level of updating you have done to the home such as a new kitchen and updated baths will drive buyers to....want it.

Very aggressive pricing on your part will create multiple offers which gives you more CONTROL on the selling process and importantly more money.

Greg Myers
RE/MAX Realty Group
1 vote Thank Flag Link Sat May 26, 2012
Mary - Often the best strategy is to list your home AT market value. Listing slightly above may mean a longer time on the market. Slightly below would obviously mean a shorter time on the market and could even result in multiple offers would could potentially drive the price over asking. Some people believe that listing over market value gives one "wiggle room". In our local area, there is currently a shortage of inventory, so listing at market value should bring offers in quickly. Your zip code, 20852, is one that has been performing well.
1 vote Thank Flag Link Sat May 26, 2012
If it is a hot market and your house is in great shape then you should be listing at slightly above market value. If your area is a buyers market and you have a lot of competition then slightly may be the way to go. Check with a local realtor to plan your strategy
0 votes Thank Flag Link Wed Mar 6, 2013
Hi Mary,

There are no advantages to overpricing a home. You will spend more time on the market because you will attract less buyers than properly priced homes. You can however make your house worth more with some carefully planned maintenance and staging. And you must have great digital photos displayed in a logical order on line. With this you can price at the top of the market range.

Underpricing could result in multiple offers if your area is hot. The market is swinging back to a sellers market in our area with low inventory and high demand. However, what you really want to try to do is nail that price. Be realistic to review all offers and know and plan for providing some closing help to the buyer. Best of luck. If you need a good Montgomery county realtor contact me and I'll hook you up with a trusted local professional!
0 votes Thank Flag Link Sat May 26, 2012
I wish there would be a general answer, but there is NOT. Each home is different from the next in most cases, unless you live in a sub division with homes that are all alike.

Therefore PRICING a home RIGHT, i.e. as close to the current market value, when looking at similar homes nearby that have sold recently and those currently on the market.

Usually when listing a home higher than what the market allows, will just delay the time when it will go under contract or the amount of interested buyers wanting to see the home.... Now are there
exceptions of course, that is why you will need an experienced Realtor's advice and guidance.
Your home could have amenities that none of the other homes have..... but then remember we are
in a buyers market in most if not all areas of the US, i.e. more homes on the market than there are
ready and willing and approved buyers, which give the buyers the advantage, lots of homes to select from and if price is important they will look at the less pricey homes first.

So if you need to be connect with a few experienced Realtors in your area, let us know.
By the way pricing, list price and potential sale price and net to seller, depends very very much
on the Sellers needs, financially as well a the need to move quickly or not so quickly.


Good Luck to you...
EdithSellsHomes@gmail.com
YourRealtor4Life! Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike. I cover the city of Chicago, all N and NW suburbs of Northern Illinois and the fine
homes of the North Shore with @Properties Brokerage.
For general information, free market evaluations, free information for buyers, just e-mail me.
I provide with partner agents real estate services anywhere in the US and worldwide.
0 votes Thank Flag Link Sat May 26, 2012
Price your home high and you slow down buyers as well as agents wanting to show your home. Price it low and you attract them.
0 votes Thank Flag Link Sat May 26, 2012
Excellent responses from experts like Jan, Phil, Darrell, Greg and Bruce.
You should give one of them a call to further establish the marketing plan for your home.

Some other issues to note:
1. Is your home in a community of 'like kind' homes. These homogeneous communities were constructed at the same time and have only a few differing floor plans. Should your community be one of these you would be wise to observe the Sold Price Per Square Foot historical record. Your observation will very likely reveal you simply can not go beyond this historical value. The expectation to this is if you can document the additional tangible assets your home possesses. Even then, the appraiser may nix the whole strategy. Such a potential requires selecting a agile buyer.

The most advantageous situation for such a home is competition. Your agent can discuss this in greater detail

2. Eclectic equity rich communities with 1924 and 2004 construction of homes creates an environment much different than the above. The buyer of this home is selecting the COMMUNITY! Selling the emotional quality-of-life factors is essential to keeping a buyer engaged. Often the seller can establish, "This is what it will cost to live here" and the buyer must be prepared to bridge the gap between the appraised value and your accepted price. (Here in the Tampa area of Florida, appraised values in eclectic communities are predictably LOW.)

3. Your situation. Without exception, you need to share with your real estate professional what your goals are and the timeline within which you are working. It is this factor that allows your real estate professional to 'file a flight plan' with every expectation of arriving at your goal ahead of schedule. Revealing your true goals after the flight has begun is unfair to your agent and, in the long run, will prove to be not beneficial to you.

As you already know, the "more slightly" you go below market value the greater the compression of the timeline. So, what are your goals, what is your timeline?

Best of success to you,
Annette Lawrence
Broker/Associate
ReMax Realtec Group
Palm Habor, Fl
727.420.4041
MyListingbook.Listingbook.com
0 votes Thank Flag Link Sat May 26, 2012
Hi Mary,

Greg and Jan below make great recommendations. I look at three main factors when advising on price: the home, the home's specific market conditions, and the seller's goals. If you have a home in superior condition, you're in a seller's market, and you have more time to sell, then listing your home at the top of the range can be a good approach to get the highest sales price.

If, however, you are competing with many other available homes (more buyer choice), and your home is comparable, then you can do best by pricing your home below the competition. In other words, be the best value to attract the few buyers that are out there.

What is the current market conditions for your home? How does your home compare? Consultation with an agent who knows the local market can give you the best advice on pricing.

You can see a video market update for Montgomery County at the link below. Hope that helps.
Web Reference: http://youtu.be/svZIXdB4MeA
0 votes Thank Flag Link Sat May 26, 2012
Jan and Phil both nailed it. Pricing should have nothing to do with what a seller wants to get and everything to do with what a seller can realistically receive. The more aggressive the asking price, the longer a home is likely to stay on the market. However, market conditions and desirability for a particular area can help guide the list price decision.

In making this decision, you need to know fair market value of the home and also take a peak at the current list price-to-sale price ratios for your area.....when looking at these ratios, also view days on market. Good Luck.

Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Sat May 26, 2012
You should ask your Real Estate agent for the current list-to-sale ratio in your neighborhood and proceed accordingly.
0 votes Thank Flag Link Sat May 26, 2012
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