I think the most common thing I ever hear at a listing appointment is "Well let's try at this price for a while and if it doesn't work, then we'll take it down a little bit". More than likely, this listing is doomed before it even gets put into the MLS. As a matter of fact, if you come across one of these sellers and you cannot convince them that their idea simply doesn't work, I would advice you to thank them for their time and walk away.
Let's first go over the role of a Realtor in "helping" to determine the price of your property. There are some things I don't think most of the general public completely understands.
- There is no "exact price" for real estate.
- I don't tell you what your home is "worth".
- The market determines the value...together we determine the price.
- I will show you a range of prices being paid for homes in your area.
- You determine the price based on the factors you control: Maketing time, financial alternatives provided, condition and exposure methods
The ideal price for your property is one that will satisfy both your desire for the highest return as well the buyer's need for top value. We can help you define that critical and narrow range.
One thing that has to be done is you have to understand the concept of market value. The market value of your property is relative. It is not based on what you paid for the property or what you have put into it through the years. It isn't affected by your opinion of its worth, my opinion, or even that of a professional appraiser. The value of your property is determined solely by what a buyer is willing to pay in today's market.
You have to consider the competition. Buyers will decide whether your property is realistically priced by comparing it to others currently for sale. Most people look at an average of twelve properties before buying. Thus your property must be priced in line with the competition.
Going back to the beginning of this blog, I was talking about sellers who want to price it high and then lower it if it doesn't sell. The biggest problem with this thinking is that your home receives the most attention during the first six weeks its on the market. If your price is too high relative to the competition, the right buyers will not even look at an otherwise attractive property.
Your Best Move for Southern Indiana Real Estate
Brett Mumaw REALTOR®
3707 Charletown Rd. Suite 1A
New Albany, IN 47150
(812) 542-9057 Office