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Setting the Sales Price
"The only thing constant about any real estate market is the fact that its subject to change."
"Setting The Price" of any home can be a complicated process because as a Realtor, I have the unique position of taking cold, hard numbers and trying to factor in the emotional and financial factors of the seller, while still keeping everything in line with the current market place. Keep in mind that I, as a Realtor, have the same goal that you, "The Seller", has....selling your home in the shortest amount of time--for the highest amount---with the least amount of stress possible! However, the only way that can be accomplished is by pricing it right from the beginning. So let's take the process step-by-step!
Step One: The Comparative Market Analysis: The first step is the comparative market analysis that allows me the opportunity to preview the home, makes notes on condition, size, location etc...at which point I will begin a search of similar properties that are currently listed for sale or that have sold within the last 6 months to establish a price range. A comparative market analysis is subject to the market at the time of completion, so please note: If you had a CMA completed on your home 6 months ago or longer, the price range needs to be re-evaulated! This range will also factor in the time on market, current competition and financing options available.
Step Two: Establishing What Your Goals Are: As I mentioned above, setting the price begin with the cold, black and white numbers established in the Comparative Market Analysis, but as the seller your financial and emotional needs will factor into the ultimate decision. At this point, we need to establish what your short term and long term goals area:
These two scenarios create an entirely different pricing parameter. If your looking for the highest amount possible than you will want to keep your list price at the top of the price range but its very important not to be unrealistic....OUR CURRENT MARKET WILL NOT HOLD OVERPRICED HOMES! If your looking to sell your home quickly, we will want to price it initially at the lower end of the price range but we will need to establish just how much money you may be willing to leave on the table! As I said earlier, setting the price is a complicated process and it is imparative that we get it right on day one in order to achieve the goal set: Selling The Home!
Step Three: Keeping on eye on the market place. Remember, the housing market is in constant flux....once the price is set, as your Realtor, my job is to market the home and maximize its exposure and it's also my responsibility to monitor the current market to make sure that the price we've set remains realistic and to identify when any adjustments need to made.
Now that we have identified the three steps involved in "Setting The Price", please take a moment to review the following articles on "Price" listed below. As always, if you have any additional questions, please feel free to call me at 812-305-0617............Craig.
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