Q: Greetings. I interviewed three Realtors to sell my house. The recommended selling price varied by $30,000 for a house we paid $190,000 for. How do I determine what my house should really be listed for or is worth. How do I determine if someone is trying to inflate the price to obtain my business. How do I detemine if someone is low balling so that they can sell the house quickly?
?Confused, Cincinnati, OH
A: Take the one in the middle! lol.
I would look at the information. Most agents base it off of comps. See where they are coming up with the numbers. If you have all the stats in front of you, it shouldnt be too hard to see who is lying.
Matt Laricy is a Realtor? with Americorp Real Estate in Chicago, IL.
A: Pricing a house is like art, there?s no magic formula. The four factors that determine the value of your home are; a) Property Condition; b) Market Condition; c) Property Location and d) Asking Price. The ?art? part comes in with the realtors perception and knowledge of the local market, down to your neighborhood. Things like, is your neighborhood in high demand? What have other houses sold for within a mile of your house, if that?s difficult to determine because of low sales, then what are comparable homes selling for in similar neighborhoods throughout your area? The listing price is a starting point, and it should be driven by your motivation to sell. Can you afford to wait it out and let it sit on the market for 3 months or longer? If yes, then go for the higher end of the price suggestion, if you have to sell sooner, then price it somewhere in between, leaving some room for negotiations since nobody offers full price these days. A strategy the banks use with foreclosure properties is to price them on the lower end of the market to encourage multiple offers and ask for buyer?s ?best and highest? offer, this may or may not be suitable for you, it all depends on your personal circumstances. At the end of the day, a house is worth what a buyer is willing to pay. You will know fairly quickly if you?re too high if you get over 6 showing within two-three weeks and NO offers. That?s a clear indication. Best wishes to you!
Maria Jeantet is a Realtor? with Coldwell Banker C & C Properties in Redding, CA
A: If the Realtor?s price vary that much I would look at the sales data again and do an average of those prices eliminating the highest and the lowest numbers. Then look at that number, and use that as your basis or asking price. Which Realtors opinion was backed up by numbers and experience? Sometimes the one that you should go with is that one, coupled with your comfort level with that person?s expertise in your marketplace.
If you cannot come to a conclusion from this then use the highest estimate and make an adjustment within two weeks or more time if needed depending on your markets activity level to bring it within the best and optimal asking price.
Guillermo Fernandez is a Realtor? with Xcellence Realty Inc.in Miami, FL.
A: Ask for each Realtor?s track record of listings. Looking for their list to sale price ratios. If the Realtor consistantly lists high and then has to lower to sell, then they ?buy? the business. Also, ask to see the actual sales in your area for the last 3 months with no exceptions. You can do the math yourself by averaging the values. Be honest with yourself about comparing your condition to those sales. And remember, if you price your home too low, you will receive multiple offers which then you can counter to increase the price. If you are priced too high, the rule is; no showings in 15 days ? lower price 5%; showings but no offers ? lower price 3%. Do price adjustments early as the longer you are priced too high, the longer it will take to get an offer.
Beverly Houlier is a Realtor? with Hilltop Chateau Realty in San Diego, CA.
A: Ask to see each Realtor?s properties they used as comparable sales. Review these properties, pictures and data, to see who closely they compare to your property.
Square footage should be 25% +- to your home. The comparable homes should come from a 0.5 mile radius and sold less than 3 months ago. No pending, back-up offer or active sales should be used as comparables for the purpose of deriving your list price.
The Realtor who has properties that you feel honestly are most comparable to home is likely to be the choice to make.
It is well known that your best opportunity to sell your home is in the first 2 weeks because the buyers who are currently looking to buy a home will come to your home within this time frame. If during that time frame, the home is overpriced then no one will place an offer. If priced fairly, then you will likely get an offer. If underpriced, then you will likely get many offers (which you can counter offer to the highest offer).
After the first two weeks, those buyers will move on and unlikely to return even when there is a price reduction. Many say they will return when the price is lowered, but most buyers feel that a price reduction means the home has a problem and can not be sold. So pricing your home to get offers and leave it exposed to the open market for 2 weeks to garner the most offers possible works well. Wish you the best on your final decision.
Adam Aguilar is a Realtor? with Reliantra in West Toluca Lake, CA.
A: I actually have a few questions you should consider to help with your decision. My first question for you is what comparable properties did they share with you? Do you feel they were using good comparable properties? Did they make adjustments to the properties that seem appropriate?
If they are pulling comparables from other areas or homes that are very different from yours, I would question why they are using those properties. If the homes are very different, it is more difficult to validate the adjustments they make in the comparative market analysis they prepared for you. If this does not help, you could always pay for an appraisal. The appraiser does not want your listing, and they would have no motive other than trying to give you a good value for your home.
David Welch is a Realtor? with RE/MAX 200 Realty in Winter Park, FL.
A: Ultimately, you (the seller) determines at what price you are willing to sell, not your agent. The agents you interviewed should have provided you with a CMA and market statistics, from which they can substantiate their suggested listing price. It then becomes encumbent upon you to analyze that information and decide at what price point you could reasonably expect to sell. As always, don?t base who you choose to be your agent solely on their suggested listing price. Best of luck.
Alex Cortez is a Realtor? with Wailea Village Properties LLC dba/Island Sotheby?s in Kihei, HI.
A: Just a thought, because all Realtors, including myself, have their own way of ?weighting? our market analysis information based upon our own experiences over the years. In my case, I have found that I am usually spot on with my recommendations and ultimate outcomes. To be sure you could hire an appraiser,maybe also a second one and see how the banks will look at your property for value because that is all that will end up really mattering in the long haul, then average the two. Just a suggestion. Welcome from Brevard County Florida, if you are heading this way in the future, give me a call or email.
David Congdon is a Realtor? with Islands International Realty in Satellite Beach, FL.
A: The best way to distinguish where you should list your home is with a CMA. This report will tell you how strong or weak you market is in your area. The comps that should be used are solds, pendings, and active listings in your area for the last 6-9 months. Many real estate agents will go by the CMA then compare the features of your home with others in the area and then adjust the recommened listing price. Remember you are the boss and the agent has to list on what you say. You need to look at the numbers and find a price that you are willing to take and start $5-10,000 higher to leave room for negotiations.
Tony Pei is a Realtor? with Reece & Nichols College Blvd in Overland Park, KS.
A: Great question! Each prospective listing agent will hold their own opinion of what your home may be worth. While I understand your being weary of the ?low ball? opinion- I hold more reservation against whoever is stating your home is worth the most. Sometimes prospective listing agents overstate worth- in hopes of appealing to the owners pocketbook- only to force the reality of a lesser sale once inside of the listing period. Honesty is key- and the comps will speak for themselves. As a listing agent, I ALWAYS go to my sellers armed with comparable properties: both sold (for value determination), as well as ?active? (for positioning against competition correctly). I use any all all available pictures to show the sellers how their home compares- AND most critical- I ALWAYS have toured the competition- so I can speak intelligently about the same comparisons your future buyers will make with the other homes surrounding yours. I often invite my sellers to tour the homes with me, so value is quickly determined and agreed upon- as a team. As careful as you are with the low ball suggestion- be just as careful with the high one- and have the agent of choice SHOW YOU the competition so you are on the same page- and don?t waste critical time on market. Best of luck to you!
Jennifer Chaney is a Realtor? with Champion Realty In Stevensville, MD.
A: Dear OH,
The quickest way to obtain a listing is for a Realtor to tell you they can get you more than what you want to list the home for. Also, they will tell you they ?know people? or they ?have a customer base?. Once they tie you down, after 3 months of no activity they will approach you and say ?you know we need to reduce the listing price because.xyz?. Therefore, be realistic in your home value, see the track record of the Realtor (not necessarily the company behind the realtor as its all about what the realtor can do to sell your home), and pick someone that you trust (or perceive to trust). Take care.
Aram Shah is a Realtor? with Florida Capital Realty in Doral, FL.
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Source: http://www.realtor.com/blogs/2012/03/22/how-i-determine-what-price-to-sell-my-home-for/
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