Home Selling in 07734>Question Details

Dennis Hawk, Home Seller in 34 briarwood ave kea...

how do you price your house right?

Asked by Dennis Hawk, 34 briarwood ave keansburg Tue May 29, 2007

We have been trying to sell our 4 bedroom home and we keep dropping the price we are now at 329.00

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Buyer feedbacks and market updates are important components to "right pricing." If you were to obtain pricing opinions from 3 experienced agents and appraisals from 3 licensed appraisers, you would find variations in the price opinions reached. No agent can tell you in advance the exact price for which your property will sell. The price is set by the market and what a buyer is willing to pay. It is important to have an objective read on market feedback and be prepared to make adjustments as the market feedback indicates. When hiring an agent, discuss how, when, and in detail what info they will provide about market feedback. You can ask for info about market exposure, web hit counts from various sources, number of inquiries which do not result in showings, number of showings, etc. in addition to simply what a buyer visit had to say. A thorough analysis of all of the above will indicate if you are priced right. An experienced agent will do his/her best to provide an initial offering price. After the property is introduced it is also importatnt to make adjustments if the market feedback warrants.
Web Reference: http://PeninsulaFirst.com
3 votes Thank Flag Link Sat Jul 7, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Dennis
You are asking a great question that will draw many answers. I can provide you with some general ideas, however your agent should help you tailor them to your situation

1. The rule of thumb is market time equals market price. If you have market time to sell (meaning you are not "having to sell quickly") you should be able to sell your home for market price. "Market price" is the price an able and willing buyer will pay for your home in market time. So the buyer sets the selling price, you and your agent set the "List price".

2. The list price is normally determined by you and your agent reviewing the comparable properties that are:
Recently Sold, Expired, Pending, and Active.
If there is disagreement regarding the probable sales price, I take my clients to view similar homes, so they are acclimated to how a buyer views a home. The best list price is within 5% of the selling price (plus or minus 2 1/2 percent.

3. A properly prepared and priced property, marketed by a competent agent, will result in the most activity within the first four weeks on the market. Depending upon the market, it may be only two weeks.
My rule of thumb is ten showings or two offers in three weeks. If you are getting no showings, the price is too high. If you are getting showings but no offers, the price is too high.

4. Your agent should be asking agents that show the home for buyer feedback. The buyer feedback, along with a market update, should be discussed every 7-14 days. The number of new listings, the number going into escrow, the number SOLD, and the number of listings that expire.

So if there are other properties selling, in like condition and price, and your property isn't, then you should probably lower your price.

However, there are other factors that contribute to a lack of offers. Assuming you have showings and have buyer agent feedback, you should know what they problem is. Most homes are not staged very well, so depending upon the length of time you've been on the market it might be time for an overhaul:
a) Pull it off the market
b) Paint the front of the house
c) Plant flowers in front
d) Re-stage the house, rent a storage unit, get everything that can be removed out.
e) Hire a professional home stager if warranted.
f) Re-shoot the photos, do a virtual tour.
(There are homes selling sight unseen with only virtual tours).
g). Look on Realtor.com, trulia, see how your home looks.
h). Do a mailing announcing the re-listing of your home to 200 neighbors (you agent should have done this already), inviting them to the open house. about 35% of the time a neighbor recommends the buyer.

Summary: What you paid, how much you need, how much remodeling you've done, has got nothing to do with what a buyer will pay.

The buyer will pay market value.
One more thing, in most cases increasing the commission to the selling office is less expensive than a price reduction. In California over 85% of the time an agent brings the buyer, so you need to motivate the agents to show your home.

Good luck!
1 vote Thank Flag Link Tue May 29, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Dennis, there is not much to say that has not already been said.........sorry that sounds so boring, but the truth is that you need to be more than a "one man show" and that involves something on your part and your agents, in the case you are using one to sell your home. One way to motivate buyers agents to take NOTICE of your property is to give out a higher % to find the buyer and yes, it may save more money than lowering the price of the home over the long haul
0 votes Thank Flag Link Wed Jul 4, 2007
Dennis the short and sweet answer is to interview 3 local brokers and ask for a market analysis of your homes value. Be careful don't let a Broker/Agent "BUY" your listing by giving you a price that is so overpriced you end up losing money after reducing and reducing. Hire a Broker that you are comfortable with and one who you sense is looking after your short and long term needs. You may have started out overpriced and were "bought" now that you've "price improved" perhaps you will sell. When your lsiting is up ask your current broker and then 2 others to give you a market analysis based upon current market conditions.
0 votes Thank Flag Link Tue Jul 3, 2007
Dennis- It's only 90% about price.. sometimes it's about the neighborhood, street, neighbors and the market..Are you offering a good fee to the buyer's agent.. have you thought about paying closing costs for a buyer.. Keith offers a lot of good information in his answer..
Web Reference: http://kayethomas4homes.com
0 votes Thank Flag Link Thu May 31, 2007
Kaye Thomas, Real Estate Pro in 90266
MVP'08
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