How Is Listing Price Determined? Here are some common methods:1) Let the seller decide.2) Price high, with the intent of lowering the price if it doesn't sell quickly.3) Price low, hoping for
Why You Should Get a Pre-Listing Appraisal
Dated: January 19 2021
How Is Listing Price Determined?
Here are some common methods:
1) Let the seller decide.
2) Price high, with the intent of lowering the price if it doesn't sell quickly.
3) Price low, hoping for multiple offers.
4) Let the market decide, price accurately, and get a quick sale with no financing problems.
What Happens After Pricing?
1) Letting the seller decide often results in a price higher than market value. This is not the seller's fault. They are simply not an authority in the market value of their property.
2) Pricing high results in low traffic, and 'lowball' offers. Ultimately, the price must be reduced to market value. By this time, buyers are wondering, 'What is wrong with this property?' If the property does sell at the higher price, the biggest potential problem is receiving a low appraisal, and the resulting negotiations to lower the price.
3) Pricing low may actually experience a phenomenon, where buyers wonder if something is wrong, since the property is priced too low. However, of these three, this strategy holds the most potential for a successful outcome. Beware, though, because this option also has its risks.
4) Setting the price in the 'sweet spot' will result in a quick sale at market value. An agent who is looking out for a seller's best interest will recommend this option.
Many agents unintentionally inflate the market value of a listing. And, buyer's agents do the same when they recommend to their buyer to offer at the inflated price. This is a common prelude to a short appraisal.
Usually, the property stays on the market too long, and the price must be lowered. If the property is drastically overpirce, the price adjustments may take place repeatedly until market value is finally the listing price. By this time, the property has been on the market too long. This could actually result in an offer BELOW market value.
Price the property at market value on Day 1 of the listing. You will be more likely to receive quick, fair offers, and experience fewer problems with the selling and closing process.
Don't be fooled: even in a 'seller's market', a property MUST be priced correctly to sell quickly with the least problems.
How Do I Know Real Market Value?
The best way to know the real market value of a property is after it is sold.
Since your property isn't yet sold, the next best way is to get a Pre-Listing Appraisal. Appraisers have special knowledge about evaluting the market and utilize tools to compare your property to comparable or competitive properties which have recently sold. An appraiser will evaluate your property to give an objective opinion of market value within the current market.
How Do I Get a Pre-Listing Appraisal?
Many appraisers offer private appraisal services. A full appraisal can cost $500 or more. A more affordable options is a desktop valuation, which is typically under $200. Both can provide an accurate, objecive opinion of market value, and provide knowledge to help you sell your property quickly and successfully.
If you are considering selling your home, a Pre-Listing Appraisal can give you the confidence to price your property accurately, and reduce the number of propblems you experience in the selling and closing process.
To request a Pre-Listing Appraisal, or get more information CLICK HERE NOW.
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