Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I met with a Realtor yesterday. He gave me just a basic analysis of the neighborhood and wanted me to list my home at the Median price of the neighborhood here in Texas at 64.00 per sq foot. Which would net me nothing, I would break even on the home. There is a listing on the other street at 89.00 /sqft. There is one that sold 30 days ago at 70.00 / sq ft. but was listed at 74. / sq. foot. I wouldn't have a problem with the price he wanted me to list my home at, if my home were a median home in the community, but it is not. It is the second largest in the communities floorplans. It is the Largest single story in it's sub division, and it's the only 4 bedroom single story. Which I believe is more desirable, because not everyone loves climbing stairs. Or having a baby upstairs while, the master room is downstairs.
Is he trying to net a quick sale for himself?
do agents do that? Do they try to convince homeowners to list low, so they can get quicker cash in their pocket??
Is it typical for an agent to come up with the asking price of YOUR home?
Since I'm not familiar with your local market area, I'm just going to mention a couple of general observations:
Single story sq ftg is always more valuable than sq ft on an upper or lower level. However, the larger the sq ftg, generally the lower the $/sf.
To answer your question - Do agents sometimes want to underprice a home in order to make a quick sale and save some marketing $$'s? Rarely, but sometimes. However, in a market where home prices are static or trending downward, your best chance for the best price is to price aggressively now and get a quick sale, rather than having to drop your price even lower in a few months and netting even less.
If I were in your situation, I'd probably interview at least 2 or 3 more agents and ask them to show you their CMA's that support their price suggestions. Just a word of caution, though. Home sellers are often drawn to the agent that tells them what they want to hear, i.e. the highest price for their house. Oftentimes, though, it's the agent that quotes the lowest price that's being honest with you. Either way, make them prove their numbers to you, and try to look at the pricing evidence objectively.
Is it typical for an agent to come up with the asking price of YOUR home?
Yes. From an agent's standpoint that is. We use the tools and experience we have to try to come up with the best possible pricing scenario for any given property. It isn't something that someone out of the business can do all that easily. You may know your square feet, you may know your neighbor's square feet. You might know something about sold prices in your neighborhood, or asking prices. That's good, knowledge is power. But we also take into consideration many other things to come up with what we feel is a good and fair price that gives you the best chance for a sale.
And guess what? A good agent has absolutely no emotional attachment to your home. Sellers do, we understand that. But it means nothing to how we structure an asking price. An honest and experienced agent goes in and comes up with what they feel are the best plans. It does no good to take a listing at a price we know won't sell. Bad for you, bad for us. It also does no good to come in at a lowball price and risk offending the homeowner. Not bad for you as you'll find another agent, bad for us as we've lost a listing.
Try another couple agents, ask for referrals, check with previous customers, shop around. If the other agents come in the same price range, the first was right. If they both come in higher, the first was probably a bit off and didn't calculate something correctly. Sincere good luck with your sale.
When I work with a client to list their home I give them a range, showing comparables, and explain why the range is what it is. I also explain how to price the house depending on their desires. I too would talk to a few other agents and then work with the one you are most comfortable with.
You don't have to list your house for what the realtor is suggesting. You can listen to the realtor's advice and/or reasoning then list at whatever price you want.
Also, even though yor home is one of the best in the neighborhood, IMHO, it's going to be brought down by the cheaper ones in the neighborhood (not an expert)
goodl luck!
When I work with a client to list their home I give them a range, showing comparables, and explain why the range is what it is. I also explain how to price the house depending on their desires. I too would talk to a few other agents and then work with the one you are most comfortable with.
Agreed! We interviewed seven agents. The top three all gave us the neighborhood comps. They talked with us about a pricing window and what they thought would be a realistic range within that window. Ultimately, we decided on our list price based on the advice of the Realtor we ended up hiring.
They also talked to us about the differences that our home offered that would help us while realistically pointing out what our competitor's were offering and how that could affect us. It's good to have a realistic outlook of what buyer's are seeking and the perception your property will give off. They should give you pointers on how you can help make it better etc.
Sounds like you need to interview more. Good luck!
Yes. The seller sets the price, not the agent. The agent gives the best information and advice they can, then the seller uses that information (or not) to set the price. Of course, an agent CAN decline to take a listing of the seller overprices it due to ideas they have that don't conform to the market.
You do need to remember that the market doesn't care what you need to get for your home and whether or not you're breaking even, making a profit, or taking a hit.
Definitely get a couple more opinions from real estate agents.
The general trend that you get is that the larger the home the less $ per square foot. There are exceptions, but that is generally true (at least here in Oregon).
Sometimes one levels are more desirable, sometimes not. It really depends on how much of your lot the house eats up. If you still have a decent yard, then many people prefer the one story.
There is a saying that you don't want to own the nicest house in the neighborhood. The reason for that is that you lose value and are pulled down by the other homes. It's also why investor's drool over crappy homes in nice neighborhoods. They get to be pulled up in value.
I am sure you are aware that many home sellers are upside down in their homes, and have negative profit. So...interview a few more agents and see what they have to say.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
