While there are many different theories, regarding how to best determine setting the listing price, of a home, most agree, there must be some philosophy, and reasons, followed! The most popular, and philosophically, best course of action, although often ignored, is pricing the house, right, from the start. This means, after a highly qualified, real estate professional, prepares a Competitive Market Analysis (CMA), based on comparable properties that have recently sold, and considering the present competition, he will then adjust the Comparable property’s price, based on its comparison to the subject house (yours). For example, if it has an extra bathroom, you would deduct a factor when determining the best possible listing price, etc. There are those who follow, what I refer to as, The Ambitious Pricing model, where they price at the very top of the suggested pricing range. Some less – than – honorable, agents might lead someone to an unrealistically high listing price, which is often referred to, as trying to Buy the Listing. There are many other theories, as well. Let’s review the best way to set the right listing PRICE for your home.
1. Planning; perceptions; pricing; property: How will your house be marketed? Are there certain features which might make it extremely desirable, as compared with similar houses? What is the planning philosophy? Are there certain perceptions about the house, or area/ neighborhood, which might impact the price? Homeowners set the listing price, not the agent, and what you list it for, is far different from what it sells for! Pay attention to the CMA, so you set a logical price! Are there any positive, or detrimental characteristics about the property, itself?
2. Rooms: How many rooms are in the house? Especially consider the bedrooms, and baths, both in terms of number, as well as size and appeal! Might staging enhance its perceived value? Is the kitchen upgraded and updated, and does it have a special type of appeal, which buyers might favor? Look at size, shape, type, and condition of the rooms!
3. Inspection; inclusions: Since a buyer will hire an inspector, prior to purchase, have you considered doing so, first, and knowing what to expect/ anticipate? Are the inclusions adding value to the property? Will you be excluding any features?
4. Comparables; competitive; condition: How does the condition of your house compare to similar houses? Is there curb appeal, or is there anything which might turn buyers off? How does your home compare with the competition?
5. Exterior: Don’t forget about the outside/ exterior components? This includes curb – appeal, lawn, walkways, patios, driveways, etc, as well as the condition of the shingles, painting, roofing, etc. Factor these in, before you decide how to price!
There’s no magic formula for determining the PRICE of a house, because there are so many variables. Only the actual buyer, as well as the market conditions, will determine what that might end up being!