Pricing a client's home is trickier than it may seem. This number can set the tone for the entire duration of the listing, and without the proper figure to send out to interested parties, activity around the property may wane and the sale could take a long time to get off the ground. So, real estate agents should make sure that the home's price is exactly what it needs to move fast.
A professional's first move should be to step back from the temptation to price the home as high as possible. While one goal is to get as much money as the market will allow, this strategy can backfire quickly. In fact, it can be easier to get a higher final sales price by starting lower and letting the buyers drive up the bidding. Deciding the right figure comes down to industry knowledge, experience and some research, and here are some additional tips to help get the job done.
Check out similar properties
Before listing, the first step a real estate agent should do is to check out properties in the area that are similar in size and style, and that are either on the market or have been sold recently. Comparing homes is a great way to get an idea of the pulse of the local housing market, and to judge what figure buyers are comfortable paying.
According to Better Homes and Gardens Real Estate, this comparative analysis will help real estate agents determine the unique features of local properties that have helped them sell. This can include the number of rooms, pools, home improvements, condition and many other factors. Then, it is time to look at the seller's home and determine where it fits into the range of nearby houses. In addition, it can also help to work with a home appraisal expert. This professional can come in and look around, providing a fair estimate of the market value of the property.
Above all else, real estate agents will need a strong understanding of the local housing market in order to best advise clients on how to price their homes. Thanks to CRS Data's wide range of suites and solutions, it has never been easier to get mortgage records, property data and much more.
Pay attention to the market
While nearby homes are a great indicator of the accurate price for a new listing, real estate agents should also pay attention to larger trends - especially with the economy and the housing market.
According to Realtor.com, one of the earlier steps toward pricing a house is to take note of home price trends. Across the country, values could be on the way up or down, and coming in outside of this range can result in a listing being stuck on the market for an extended period of time. It can also help to check out whether or not homes are selling quickly, how affordable mortgage rates are and if the economy is surging or slumping. The answers to these questions can help any real estate agent assist their clients.