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How does one even price a home these days with such a wide range in value and sales price vs asking? I.e. why would one list a house at say $300,000 when it ultimately sells as $350,000?
Price too high, and it will still sit on the market.
People will assume you want 20% over list price anyway, and many will say, "Forget about it."
Price reasonably, and let the buyers set the price high. They will.
The goal is not to look too dumb or too greedy, and let the market do the heavy lifting.
How does one even price a home these days with such a wide range in value and sales price vs asking? I.e. why would one list a house at say $300,000 when it ultimately sells as $350,000?
One does a market and comparative analysis to determine a price range that reflects the local market, then adjusts for location and other relevant effects that distinguish the property from others. I am not an agent.
The research can be pretty simple to excruciatingly detailed. Interview a few RE agents and get some advice. It can make a huge difference. Your example is too generic to really address because list price is just one part of selling tactics. It seems like EVERYONE is in a hot seller market and buyers are overbidding with all cash and waiving all inspections and contingencies---but are they?
My neighbor just listed $10k over comps and sold within a few hundred bucks of the most recent comp--her pricing tactic, whatever it was, did not generate offers above market--or she didn't want to wait and see. It was only on the market for a few days. The place was staged beautifully and the agent created a first class listing--probably more than needed in this market (LV Valley), which is a scorching hot seller market.
What does your realtor say and why? And is there anything you can do to make your home more appealing ?
Multiple realtors just give you a rather wide range. Some say price low end to get multiple offers, others say mid range and prob still get multiple offers. Just confused.
Multiple realtors just give you a rather wide range. Some say price low end to get multiple offers, others say mid range and prob still get multiple offers. Just confused.
Do your own market analysis. Go on Zillow (ignore the Zestimates) and look at recent home sales in your subdivision (3 to 6 months). There will be photos inside and out as well as details. Compare your house to those sales and pick homes that compare closely to yours. That's what buyers will do.
Then you'll have your potential asking price and you can adjust up or down as you see fit.
I think it’s quite difficult to price appropriately these days. My realtor did a comp analysis and recommended a range. I price my home in the middle of that range with the hope of getting a couple of offers at or slightly above list. Instead I got 10+ offers and most of those offers were between 10-15% over list. Neither my realtor or I expected that outcome. It wasn’t intentional. And one of the other realtors I interviewed actually suggested pricing my house 10k less because she was concerned that my house at the price I ended up listing at wouldn’t generate enough interest to sell quickly.
So I think in many areas it’s a bit of a mystery. While almost all houses sell for multiple offers in the first weekend in my area, there are a couple of houses that seems to be very well priced, seem really nice, and just are not selling.
#2. Market the home as a For Sale By Owner for a limited amount of time to create urgency.
We had better than expected results when marketing a home for $400,000 in a $450,000 area, and clearly stating that all offers will be reviewed on a certain date, usually no more than 5 days after putting it out there. The market place will decide the commission free price in competitive time frame so no long drawn out nonsense. It is a win-win strategy and it isn't rocket science to fill out a standard form from an escrow company.
How does one even price a home these days with such a wide range in value and sales price vs asking? I.e. why would one list a house at say $300,000 when it ultimately sells as $350,000?
To promote a bidding war. This is how the value of anything is discovered, 100% of the time.
Of course, it could backfire, if there's little participation...(and someday, this WILL happen.)
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