In a real estate transaction pricing is a very crucial element for success. So it is very important as a real estate professional to explain to sellers if they are confused some factors that contribute to pricing of homes in the neighborhood.
Every neighborhood has its perks and pitfalls. So make sure as a real estate professional you understand the pros and cons and accordingly educate the sellers. Often this may lead to confusion for sellers; some of the most common factors include how close is a highway, train or subway station these will gain value for the home; however if your neighborhood is an industrial area or constant road construction site or prone to crime it will be a good idea to compare locations and then explain the pricing of the home to your client.
Lot Size/ Shape.
This is often a deal maker and a breaker for many home buyers. Elaborating on the usable space available is the ideal way to get the best price for your home. However sometimes if the home is a vacation home close to nature surrounded by trees of the lot this could also act as an asset and get you a good deal.
Home owners who have done home-improvement projects typically get a higher price for their property. You should know which properties in the neighborhood have undergone renovations and how much they sold for so you can suggest to your seller what projects they should do if they want to boost their home’s sale price.
In some markets, the cost of land has dropped, making building a new home less expensive and, thus, more affordable for buyers. Sellers need to understand how competition from the new-home segment could affect their listing price. In such a situation compare the pricing of other builders in your area to show sellers the potential impact on their home’s value.
Listing Price and Sales Price.
Many sellers will go online to see listing prices for other homes on the market in their neighborhood and ask you to price their house accordingly. You need to explain that listing prices reflect what sellers are asking, not what buyers are willing to pay. That’s why sold inventory is more reliable for determining the realistic price of your seller’s home than the asking price of properties currently on the market.