Pricing a home to sell is easy. Seriously. You just need a dartboard with some numbers on it. Hold dart. Throw. Home price. See? Easy. I know we agents make you think that we run data and go in homes and other things to make us look good, but it is all about the darts.
Okay, so it’s only about the darts if you flunked math and spend the day in your pajamas, never stepping foot inside a house. For the rest of us that can calculate averages and percentages, we actually run data. Pricing a home is part data crunching and part art. It’s the art part that sets agents apart. The rest is having the backbone to tell a seller a realistic price for their house.
It isn’t a big secret that overpricing your home has negative consequences for sellers.
- Agents will not show the home to their clients. Agents don’t want to waste their time showing a home that they won’t sell. Remember they only get paid if they sell a home.
- The home will sit on the market and actually help to sell other homes in the area by making them look like a bargain.
- It tells buyers that you are not motivated to sell and will probably not negotiate easily.
- The home will sit on the market and buyers will feel there is something wrong with it.
- Sellers get stressed keeping the house clean and finding things to do while buyers look. Only to have no offers.
- Sellers get frustrated and anxious, the price gets dropped too low and the home sells for a lower price than comparable homes.
- The house may not appraise for the asking price and the buyer may terminate the contract.
- You will get angry with your listing agent when you say they aren’t working hard enough to sell your home.
Determining the price of a home
Some home sellers believe that if you just market the property enough then someone will come and by it. While marketing is very important, it is not one of the top reasons that a home will sell. Salem Oregon real estate agents can market a home for a seller and send themselves into bankruptcy in the process. Knowing the top factors in the sale of a home is important, so that a realistic price can be set for a home.
Factors in the Sale of a Home
- The condition of the home
- Terms and availability
- Conditions of the real estate market
- Conditions of the financial market
- Promotion and marketing