Q. How do I estimate a list price for my home?
Answer:
Here's the problem with setting a list price for your home: If you price your home too high, no one will make an offer and if you price it too low, you may leave money on the table.
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Choosing the right list price is an art, but having solid information can help. First, you need to know how quickly you want to sell. Do you have six weeks, six months or six years? If you're waiting to sell until you get the price of your dreams, you may be wasting everyone's time.
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Next, you need to know what's happening in your market. Ask at least three real estate agents to prepare a comparative marketing analysis (CMA). A CMA includes three things: A list of properties comparable to yours that have sold recently in your neighborhood (called "comps"), the agent's marketing and advertising plan for your home, and a suggested list price.
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Since no two homes are identical (even homes with the same floorplan have different decorating and levels of wear and tear), agents have to add or subtract dollars from the sales price of "comps" to come up with their suggested list price. That's why if you invite three agents to prepare CMAs for your home, their suggested list prices will undoubtedly be different, sometimes as much as $50,000 on a $250,000 home.
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Don't immediately jump for the highest price. Sometimes, agents will appeal to a seller's vanity, suggesting a pie-in-the-sky price that the agent knows will have to be lowered to sell the property. And don't necessarily jump at the lowest price, since the agent may simply be trying to undercut the market in order to sell your home as quickly as possible. And since selling your home isn't a fairy tale, the middle price may not be quite right either.
- That's why you shouldn't take the suggested list price at face value. There is room for give and take between you and your agent. If you feel your home should be priced higher or lower, feel free to share your reasoning with the agent. If your reasons are good enough, the agent may agree to use your price when listing the property.
The more you know about how much neighborhood homes are selling for, and how long they've been sitting on the market, the more intelligent a decision you'll make about where to price your property.
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Your question will typically be answered within one business day by email or phone. By submitting your question, you agree to allow ABQrealty.net to share your question and the answers we provide on our Answers Page. Your identity and personal information will not be posted on this website, nor transferred or sold to an outside party. If you provide your phone number, you agree to be contacted by phone.
John Mitchell 505-321-4800
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John Mitchell ABQ Realty Office: 505-275-1161 Fax: 505-422-5793 |
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