Home Selling in 94947>Question Details

Kathleen Fre…, Home Buyer in Novato, CA

how do I price my home in a changing market?

Asked by Kathleen Freitag, Novato, CA Sat May 12, 2007

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Cindy Davis’ answer
I agree with Roberta...it depends on the market. Is there a lot of inventory, or very little? What type of condition is your home in? Is it model perfect or more of a cosmetic fixer? The answers to these questions will impact how to price.

We always look at the comparable properties , do a market analysis, and so forth. The best way to price is through dialogue with your chosen listing agent. Invite 3 agents into your home and get some opinions!

Good luck.
0 votes Thank Flag Link Sun Dec 22, 2013
Kathleen: Much depends upon your local market. In the San Diego real estate market, we are advising our sellers to take an aggressive stance and price their properties competitively. This is not the time to price your property over the top so that your "have room for negotiations." Doing so, you could very well lose potential buyers to homes with more motivated sellers.
2 votes Thank Flag Link Sat May 12, 2007
Roberta Murp…, Real Estate Pro in Carlsbad, CA
MVP'08
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H Kathleen:

In a changing market, as well as in the normal market, the philosophy of pricing is pretty much the same.

The pricing of home always depends on supply and demand, the buyers out there, the supply of money, and your motivation.

If you are serious about selling, you should always price your house competitively. You need to know the local market, the desirability of the location and the kind of house you have; the condition of your house also affects how you should price your house. The price range of your house and the kind of buyers also affect how easily you can sell your house.. Make sure you track the recent sales and inventories of the houses around your area...

Considerations are many, your realtor should be able to advise you, or please feel free to email or call me and we can discuss more
1 vote Thank Flag Link Fri Jun 15, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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Kathleen,
Your profile indicates that you are a buyer...so I am not sure what you are asking. You've received some good advice, however it may not apply to your situation. Markets are ALWAYS CHANGING. The key is to know WHAT DIRECTION and HOW QUICKLY.

My experience has been that the number of agents that truly understand markets are few.
The other big question is where you are moving and when do you need to be there. As in any endeavor, time is money.
If I had a few more particulars I could perhpas provide you with a more useful answer.
1 vote Thank Flag Link Sat May 12, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Pricing your home mean evaluating the past statistics of what is selling AND being able to predict where the market is heading. Checking into the government charts of sales activity (Federal Housing Enterprise Oversight Table) can give a glimpse of seasonal changes in price. Reviewing the competition currently for sale also gives clues. Pricing your home right is critical no matter which way the market is heading. Pricing it high or low, will mean you are losing money either way.
1 vote Thank Flag Link Sat May 12, 2007
Kathleen,

I'm not sure where you are located so your questions is rather a broad one. But to give as detailed an answer as I can without having more knowledge of your home's condition, location and/or current marketing efforts.

First of all, you need to remember the basics about what is said to sell a home:

1. Price
2. Condition
3. Location

Since you are not sure what the first should be then you need to start with the next two. But keep in mind that ever needed, and in my high opinion, most important factor is what is being do to market the home?

But basically you need to know what the current market is baring for comparable homes in your area - not what is currently for sale alone but also what has "RECENTLY" (3-12 months) sold in your area.

I strongly suggest using a professional to help you determine that and get yourself a Comparative Market Analysis from a REALTOR.

If you want to take that a step further have an appraisal done on the home. Then consider what is on the market in your neighborhood, how long have they been on the market - if they are sitting for long periods time at those prices then more than likely they are overpriced for the condition and location and you must make adjustments for that.

If you do not use a professional to help you determine the estimated price your home should sell for then try to find the "most" recent homes sold prices comparable to yours, look at what is for sale and determine how long they have been for sale and then place your homes price as near the top of the comparables that have sold most recently and at the lowest of those on the market.

Try that for a few weeks if no activity -AND YOUR HOME IS BEING PROPERLY MARKETED DURING THAT TIME- then adjust downward in increments.

But the key to it PRICE, CONDITION AND LOCATION are only good if you have property marketing.

IF NO ONE KNOWS THAT YOU HAVE GREAT PRICE, CONDITION AND LOCATION THEN THOSE THREE THINGS ARE USELESS.

Hope that helps.
1 vote Thank Flag Link Sat May 12, 2007
Hi Kathleen,

Having your local agent keep an eye on dollar per sq. ft. living area, Average Days on Market, and other factors will help you in pricing.

Kind regards,

Arpad
0 votes Thank Flag Link Wed Apr 29, 2015
The market, technically is always changing. Or at least subject to change. I'd recommend analyzing the last 6 months in market activity for comparable properties and then match those up with trends and current activity. If comps prove to be selling well over asking over the past several months, yet now seem to be sitting on the market, then it's time to reanalyze your motivation to sell and your current financial situation. You may need to price the home below apparent market value to really get the activity you want.

Robert Rapp
415.272.2391
BRE 01944914
0 votes Thank Flag Link Wed Apr 29, 2015
Base it on sold comps and supply and demand.

Chris
0 votes Thank Flag Link Sun Dec 22, 2013
Great news, most areas are seeing home price increases. In today’s real estate climate the best starting point is for you and your agent to review the recent closed sales. If your local market it showing appreciation it is advisable to lead your market and stretch the current values. This must be analyzed carefully so as not to outpace your market and have your home languish on the market. The longer your home is on the market, you can typically expect to receive lower and lower initial offers.
Also review the pending sales for your market. This will be an excellent way to gauge current days on the market. Be careful not to price yourself too high. You will know very soon if this is the case. If recent pending comparable's are selling in 10 – 30 days and your home is on the market for 45, it is almost always the price. This does assume your home is on the correct MLS (multiple listing service), has multiple photos and is easy to show. Your agent will get feedback from prospective purchasers who have seen your home and have a good understanding of current values. Overpricing your home in any market is the quickest way to get LESS for your home not MORE

Pricing your home in an appreciating market is just as important as the declining market we all experienced for a number of years. Do your research with your Realtor®, price aggressively (if warranted) and you will hopefully have a quick and rewarding sale of your home!
0 votes Thank Flag Link Sun Dec 22, 2013
Competitively, Know your competition and sold property in the area. You don't want your price to sell the home down the street.
0 votes Thank Flag Link Sat Sep 14, 2013
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