Friday, June 9, 2017

Be Realistic When Pricing Your Home

Just about the time we think we're "legends in our own minds".....along comes a client who has never heard of us or has no idea how long we've been selling real estate and could care less about all the awards and designations we have after our names.  They just want to know what we can do for them. And how we can help "them"...... sell their home or their parents' home.   And that is definitely ok.

For those of us who have been in the business for 35+ years,  I think it's good practice to bone up on your "presentation skills" and prepare a package for a client that actually "shows" them a written market analysis,   gives them names and phone numbers or email addresses for previous clients and tells them what you think should be done to the property in order to procure the best and highest price.  No dilly-dallying around showing them fancy flyers you'll prepare or photographs that will be taken....that's a "given".   If agents aren't doing photos and/or videos of their listings they're missing out.  With every property showing up on so many websites now,  it's amazing to see the number of "hits" the properties get that have videos.  People love looking at videos and that may show off an area of the property someone really has an interest in...like a garden,  a pool or a beautiful kitchen.   You just never know. So it's just prudent to be prepared and more importantly, be very honest with the prospective seller.  Everyone likes to think their home is worth so much more than what a neighbors home sold for down the street......because "theirs" has new vinyl in the kitchen,  or a slightly larger backyard or fresh paint inside.  But it's in no one's best interest (especially not the seller's) to  take a listing that is over-priced.  If it's ever priced too low,  then WOW you get multiple offers!   If it's priced too high, though,  it sits there and sits there through minimal reductions until FINALLY you get an offer that is lower that what you should have started at!  You get less in the long run than if you'd priced it right to begin with.  I can't tell you the number of times I've repeated that sentence.  And it's always true.  Be realistic. Look at the comps. Compare amenities. Compare square footage.  Compare locations.  A buyer will.  An appraiser will.  The statistics and information we use from MLS is exactly the same information an appraiser will use once you procure a buyer.

Don't list with an agent just because they give you a price they think you want to hear.  Agents in the business refer to that as "buying" a listing.  Be "suspect" if an agent gives you glowing accolades even if you know your kitchen vinyl is old and deteriorated,  your hardwood floors need refinishing, and your kitchen needs major updating.  Don't be naive .... ask to see comps showing what other homes in the neighborhood sold for and whether they sold close to the asking prices.  And ask that agent to do a "net" sheet showing you how much you'd have in your hand when it sold.   I do this on a yellow legal tablet and hand it to my sellers at my listing appointment.  I also do another one when we get offers.....and 99% of the time, my sellers bring that same net sheet to the title company when we're ready to sign the final papers,  just to see how close that net sheet was to what they actually got.  And you know what?  It's almost spot-on every single time!

Most importantly,  expect your agent to be  honest with you about what  the price should be.  Priced correctly,  you'll have a timely sale and escrow.   Priced too high,  well,   we've all been there at some point during our career.  The calls from sellers inquiring as to why it isn't selling (the price),  asking if it's going to be held open again Saturday and Sunday, (14 open houses later and no offer)   asking if it's being advertised regularly (don't need to in this market) and asking if you can "re-arrange" the photos that appear in MLS......thinking all this is going to get them the price they want.  Sadly, probably not.

Start off right......get it listed, get it sold and get that money in the bank!

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