About Your Home’s Listing Price
Home’s Listing Price:While we often discuss setting the best home’s listing price for a house, one must understand that the listing and selling prices are very different entities. The final decision for a home’s listing price rests with the homeowner. Still, there are many other factors which influence that decision.
This is why real estate agents recommend that homeowners do all they can to get the best price in the shortest period of time, with the least amount of hassle and aggravation. We also strongly believe that, the best way to achieve this is to carefully select the right Realtor. Someone, who he will work with you and for you! Of course, since I am a Licensed Real Estate Salesperson in the State of New York, for over a decade, I understand the benefits of choosing the right agent/ real estate professional. This article will briefly discuss 5 important factors, which should be used, in determining one’s home’s listing price.
1.Professionally prepared, Competitive Market Analysis (CMA): This is the first and perhaps the most relevant tool which should be used in this process. It involves more than merely glancing at current home’s listing price or past home’s listing price. When done professionally properties are carefully chosen based on various factors. These would include
- when they sold
- similarity to your home
- number of rooms
- property size
- Improvements and / or distinguishing characteristics
2. How quickly does the homeowner wish to sell? An often overlooked consideration is the Opportunity Cost of Money. Bear in mind that, every month your house remains unsold means you continue to pay taxes your existing mortgage and maintenance. This does not mean that you should accept any price but, emphasizes why having a realistic home’s listing price is suggested. No one knows for sure what a house will sell for – only the real estate market can determine that. And,no one also knows what an individual buyer might be willing to pay.
3. Homeowner’s need and house’s condition: It is up to the sellers to determine what they will accept still, they should factor in the condition of the property into the equation. Are there any minor improvements / tweaks which needs looking into? Discuss this with your real estate agent.
4. Tolerance for hassle: One’s temperament and tolerance are also factors. Some people may be willing to gamble and play hardball in order to squeeze the last nickel out of the deal while, others would rather get it over with especially, if the difference is not that significant.
5. Reality: Charlie Brown says, Reality – what a bummer! He is absolutely correct! At times, statistically, the best offer comes in the first few weeks so my suggestion is to price a house correctly right from the start and give yourself the best opportunity!
Many factors go into the final selling price of any home’s listing price. Consider these five factors and several others as you set your home’s listing price.