One of the most important rooms in your listing is room for negotiation. It is critical in every market to set your list price accurately. In any market, if your listing isn’t priced right, you price yourself out of showings. Pricing with room for negotiations can be a dangerous practice and may sabotage your chances to make the sale.
Here’s where a trained and experienced broker is instrumental in getting the property priced right, not only to achieve vigorous showings, but also to elicit that all important high offer. A skilled broker is trained by appraisers who are actively working in your market and who partner with lending institutions in providing their professional services to set market value once the property is under contract.
Once your broker has researched your neighborhood’s recent sales of properties most similar to yours, several line-item adjustments will equalize the subject (your property) and the comparables (homes sold in the last 6 – 12 months in or near your neighborhood) for a suggested list price range. Then the competition will be evaluated. If new construction is in the area, the product, incentives, and desirability will also be considered. Any home, in addition to yours, that would be included in a buyer’s tour must be carefully considered.
Once a range of value is determined using several calculations, it’s time to discuss price. If your home is found to be a unique value, then its suggested list price would be on the upper range of calculated value. This unique value may include condition, location, or the fact that there’s nothing like it available in your price range. Here’s where sellers sometimes are tempted to become greedy.
It’s just not worth the potential sabotage to your sale to price your property greater than ten percent above the suggested list price of your broker. Buyers are out touring the listed homes and generally getting a better hands-on look at competing inventory than most sellers, and will see the inequity. Most won’t make the offer even if they like the house. What seller wants lots of showings, but no offer? What buyer wants to make an offer, only to hear “No?”
Take your broker’s advice in pricing your listing. The result will be a quicker sale at a higher percentage of the list price. Who wants the deal to fall apart when the appraisal is returned?
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I love what I do, I’m good at it, & I’d love to work with you! My personal best is 8th with foreclosure bid; we not only won (it was NOT more $), but listing agent complimented me on my complete package, & asked permission to use my secret weapon!
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Chrystal is a REALTOR® and principal of The Safari Group, a local, homegrown real estate firm, specializing in all phases of the residential and small business real estate market, including New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, Foreclosures, Short Sales, and Luxury Homes and GREEN Features. Contact her at 704.562.1030 TXT/PH or Chrystal@TheSafariGroup.com