A while back I wanted to sell my 1984 Corvette for about $15,000. It was a classic car with 34,000 miles and in excellent condition. I knew what I paid for it and I wanted to make a couple of bucks.
After many months, I sold that car for a little under $10,000.
Many homeowners make the same mistake that I did. They set their list price based upon what they paid or how much what they want to get for their home so that they could comfortably move into their next home.
But if a home is priced too high, some potential buyers won't even look at it, others might walk away without making an offer, or some might never know that it was available for sale.
When pricing a home, the simple truth is that a home is worth only what the market says it is worth.
Some real estate agents will go with the seller's estimates - because they just want to get the listing - and hope to lower the price afterwards.
Other agents will stick to their pricing strategy rather than overprice the home to have it sit without any showings.
All I can say is "sellers beware." Don't choose a real estate agent based upon highest price only. Choose the Realtor who provides the best Comparative Market Analysis (CMA) that explains how your home should be priced so that it sells for the highest possible price. Look for a recommended price range that the agent will firmly stand behind.
The CMA should show the prices of similar homes that sold in the past six months. It should also include the prices of home that are currently for sale that represent your closest competition and those that have expired or were taken off the market because they did not sell.
Other data used to support pricing include: house features, location, view, lot size, days on market, difference between list price and sold price and how. Houses that WOW sell faster and for higher prices!
In addition to the CMA, you should rely on your real estate agent's expertise, experience and record for getting results.
Larry Stoller is the broker-owner and Realtor with Real Estate Five of the Lowcountry. Larry@RealEstateFive.com or RealEstateFive.com