As a REALTOR® I often get calls from people wanting to meet with me, amongst other REALTORS®, and get an opinion on what to list there property at. If I am being honest then I must admit that these meetings still terrify me. These people are dealing with a huge investment. They have emotional attachments, financial requirements (depending on what they paid for it), and the lingering desire to make a profit. On top of all of this they are examining me to see what I represent and if I am the best option for them. I often walk away from these meetings with mixed feelings. I want these potential clients to feel my passion for what I do and to know that I genuinely care, but also I want to sell their home. I want to price it appropriately so that it doesn’t sit on the market for a year without any interest. So where do I get the magic number of what I recommend to list a property at?
When a potential client first calls I take note of any information they can offer me on their home: square feet, address, bedrooms, bathrooms, and any extras. From there I begin my research. I find their property on MLS® and see what it was purchased for and in what year, how many times it has been sold, and any other basic information I can gather. From there I look at comparables. I check the system for all properties that have sold with similar features in the last few months. If I cannot find anything on the system that is a close match I broaden my search to the last 6 months to a year. Once I have researched enough that I feel it is a good number I discuss with my real estate network, I get their opinion based on their experience of the market lately.
Next comes the meeting. I meet with the potential clients and present my research and what I feel the property SHOULD sell at (disclosure: I am not a fortune teller so even though I do extensive research it is not a guarantee). If the clients choose to list with me we discuss the price further. I get their opinion and what they need to make on the property. I always want them to feel comfortable with the price, sometimes this means the property is priced higher than I recommend as they feel it is worth X amount of dollars and sometimes it means we pick a number that matches my research.
Once the property is on the market we feel it out. On several occasions I have listed a property and it gets an offer almost immediately. This has sometimes caused clients to question if we were priced too low to which I always say, if we listed the property at a price we were happy with and we got an offer quickly that simply means we were priced perfectly. If we are not so fortunate to get an immediate offer then we wait. Sometimes the client wants it sold quickly so we may start price drops within a few weeks or other incentives if there has not been a large response. For others they are in no rush and are willing to wait it out, I see this especially with custom homes or acreages, as there is a very select market for these kinds of properties.
As with most things in life, selling a home is a lot about timing and even more the price. If you want to try to find that balance with me I welcome your call and despite my nervousness, look forward to meeting with you soon.