Understanding the importance of pricing a home correctly … and the role and value of which the listing agent plays in that, is key!
(Republished from May 5, 2024)
It’s more than just listing the property for sale on the MLS, and putting a sign in the ground, it’s so much more than that …
Pricing a home correctly is one of the biggest keys to getting the most value for your home once placed on the market, no doubt – but let’s rewind to the beginning to see where it all starts.
It’s all in the presentation … I am sure you have heard that term before, right? It’s preparing the home for the market so that the buyers can see the value of the home once they step inside. While you may have some homes that are being sold “as is” and other homes may be considered “turnkey” as they say in the real estate world, and either will sell for what the buyers are willing to pay. Some seller’s took steps in the process of “getting property ready for the market” knowing they would be selling at some point, or they were just very good at updating/maintaining their home for themselves. But perhaps, you have lived in the home for many years, maintained the home well, but the home needs some updating for the next generation of buyers that are stepping into the market. That’s where the role of the listing agent comes in – understanding the market values and the variables within, of the competing properties. While we are seeing homes sell in many cases well over asking, due to the lack of inventory – but I stick to my “story” of pricing a home right at Day 1 is the “biggest key” in netting the seller the most value, having an effective marketing and pricing strategy in place is where it all starts.
Case in point … Seller client lived in their home for 45+ years – maintained it well, but updates to the home were mostly absent. I met with the family to strategize how to get the most value for their home and discussed what was needed to accomplish that goal. It was truly a “family affair” – mom & dad while older, moved out of state to live closer to their children – and the coordination of myself and the family, who was also out of state, was key to getting it all done!! Getting the right service providers in there to assist in the mission, and then once complete – my doing a re-evaluation of the market to see where their homes value would be in today’s market – as it is ever-changing. The key to pricing is not only what properties have “sold” over the last 180 days – it is knowing the current inventory (previewing those homes if not seen) so we are aware of what the property will be “competing against” today, as we place it on the market. And then putting that pricing strategy in place to get as many buyers as possible in to see the property – getting them excited enough to make an offer on the home, in hopes in making it their next place to call “home.” While the sellers thought they may have priced it too low – in the end .. .it doesn’t matter “where you start – it’s where you end up” right?
It took a little time in the preparation, but our mission was accomplished! After only one week – with 35+ agent showings, 30+ families coming through the open house – netting my seller 14 offers! Discussed the value of each offer with the family, going over both price and terms – they accepted an offer WELL over asking, with terms acceptable to them as well. Inspections complete, closing in 30 days.
I will just touch a little on story to the “contrary” to the above scenario – if a seller insists on pricing a home too high – they will not get the activity or excitement of the buyers that will warrant them the activity needed to extend the true value of their home. There will be no open house visitors, or agent showing requests on that home, because you are marketing to the wrong market, if that makes sense. If you place too high of value on a home that is unwarranted – the expectation naturally will be much higher. In the end they are only working against themselves and will only wind up where they should have been, had they listened to their agent, and in all likelihood – netting them less, and loosing precious market time. A lesson will be learned here – listen to the professional … we know (well most do) what we are doing!
This is just a tiny snapshot of the day in the life – which I hope highlights the value of hiring a listing agent. Part of my job as a realtor is to always be evaluating the market, which gives me the ability to translate that information to potential sellers who are looking to place their home on the market, and also for the buyers, who are looking to enter into the market. Knowing the strategies to be successful at getting my buyer clients offer accepted due to current climate of “multiple offers” can be challenging as many know may very well know. For real estate to work – you need to have representation on both sides buyer/seller which is first and foremost … to bring the transaction together full circle and to the closing table!
I will close by saying hiring the right real estate professional is the very first key to getting your home sold for the most value in the shortest amount of time. If you are considering buying or selling your home – please don’t hesitate to contact me. I am here and happy to help!
Laura
The Key To Your Real Estate Success
Helping buyers & sellers achieve their real estate goals.