How do I determine the asking price of my home? By Laurel Grandle, Knoxville, TN REALTORReal Estate MarketingUpdated on Mar 1, 2012 View more like this | Visit KNOXVILLE, TN | Contact EXIT Realty Knoxville |
How do I determine the asking price of my home? By Laurel Grandle, Knoxville, TN REALTOR
Pricing a home correctly is essential to a successful sale. With home prices still falling in some areas and seeking to stabilize in others, this deserves careful consideration and research.
There’s no magic to pricing a home for sale: The REALTOR will find recent sales of similar homes in the same area and compare them to the subject property (the one that’s going to be sold). If the comparable property has, for example, granite counters and the subject has formica, there’s usually an adjustment to reflect the quality difference. If a comparable property sold for $400,000, for example, and it had granite counters in the kitchen and the subject does not, then the price comparison of the subject would be reduced, to equal the value of the subject…maybe $390,000. Subject is worth approximately $390,000 if all other features are the same.
The REALTOR should explain SOLD, ACTIVE AND PENDING comparable properties and demonstrate how each features that is different from the subject is evaluated until the sellers and the REALTOR can agree on a listing price.
One of the worst strategies a seller can adopt is, “Let’s price it high; we can always come down”. This sometimes leads to a home being on the market over a year AND selling for LESS that it would have if priced correctly to begin with.
An overpriced home will be rejected by buyers and agents, alike. A buyer who is looking for a $400,000 home and shown a $350,000 home PRICED at $400,000 will NOT make an offer…he’ll move on. He doesn’t want a $350,000 home, he wants a $400,000 home. And the buyer looking for a $350,000 home will most likely not see it at all, because he knows he can’t afford it. The wrong price has the wrong buyers looking at it! And then it languishes on the market, getting a reputation that something must be wrong with it, because no one is buying it. That long market time has the sellers’ “opportunity dollars” tied up. And the sellers may have two mortgage payments. It doesn’t serve a seller to list high.
In a market with declining values, this is particularly important…as the values decline, you are in the bad position of trying to “catch” the market…reducing all along to get a buyer. Sellers facing a declining market need to be very aggressive and price just below what the market “says”…or they won’t sell.
Thinking of selling? Please give me a call. I would welcome an opportunity to discuss the market, recent sales, properties on the market and show you how we price homes. I can help you with every aspect of your relocation: 865 389 2551 or office: 865 690 4300.
Thinking of moving? Call today! I can help you with every aspect of your relocation: 865 389 2551 or her office: 865 690 4300.
Please visit my web site: http://www.LaurelGrandle.com. You can begin the search for your perfect home right there!
Laurel Grandle sells homes throughout the East TN Area, including Knoxville, Karns, Farragut, Halls, Powell, Loudon County, Knox County.
She specializes in Lake Front Properties, Luxury Homes, Historic Homes, New Construction and she is an expert at matching buyers with the right house, regardless of the area or price range. She has over 25 years of experience and has helped thousands of clients with their real estate needs.
Here is what some of her clients have said about her recently, “Laurel has an unlimited amount of patience. My family has very specific needs and she understood them and worked with us until we found the perfect home at the right price. I don’t think anyone else would have done that for us and we’ll always be thankful we found her and worked with her. She’s wonderful!” Margo
“Laurel has accommodated us on many occasions very quickly, as our schedules change all the time. She was always understanding of the time and date changes and she helped us find a great house.” Williams
“Thank you! It's wonderful having you as our agent and we both think you're a terrific person. Bob was right when he said we'd love you.” Joe
“Laurel really knows the area and the market. She didn’t waste any time…she showed us what we ask for in the location we wanted and made the whole move a very good experience for our family”. Robert
“Before we wrote an offer, Laurel did a detailed market analysis for us and discussed it with us so we understood what a fair price would be. She went over the entire contract in detail and clarified everything for us. We purchased with confidence and we’d never use anyone else IF we ever decide to sell!” Anne
Exit Realty Knoxville (each office independently owned and operated) is your number one resource for all real estate needs, including listing, sales, referrals; our EXIT agents are committed to serving you—put us to work for you: 865 690 4300.
direct: 865 389 2551
Pricing a home correctly is essential to a successful sale. With home prices still falling in some areas and seeking to stabilize in others, this deserves careful consideration and research.
There’s no magic to pricing a home for sale: The REALTOR will find recent sales of similar homes in the same area and compare them to the subject property (the one that’s going to be sold). If the comparable property has, for example, granite counters and the subject has formica, there’s usually an adjustment to reflect the quality difference. If a comparable property sold for $400,000, for example, and it had granite counters in the kitchen and the subject does not, then the price comparison of the subject would be reduced, to equal the value of the subject…maybe $390,000. Subject is worth approximately $390,000 if all other features are the same.
The REALTOR should explain SOLD, ACTIVE AND PENDING comparable properties and demonstrate how each features that is different from the subject is evaluated until the sellers and the REALTOR can agree on a listing price.
One of the worst strategies a seller can adopt is, “Let’s price it high; we can always come down”. This sometimes leads to a home being on the market over a year AND selling for LESS that it would have if priced correctly to begin with.
An overpriced home will be rejected by buyers and agents, alike. A buyer who is looking for a $400,000 home and shown a $350,000 home PRICED at $400,000 will NOT make an offer…he’ll move on. He doesn’t want a $350,000 home, he wants a $400,000 home. And the buyer looking for a $350,000 home will most likely not see it at all, because he knows he can’t afford it. The wrong price has the wrong buyers looking at it! And then it languishes on the market, getting a reputation that something must be wrong with it, because no one is buying it. That long market time has the sellers’ “opportunity dollars” tied up. And the sellers may have two mortgage payments. It doesn’t serve a seller to list high.
In a market with declining values, this is particularly important…as the values decline, you are in the bad position of trying to “catch” the market…reducing all along to get a buyer. Sellers facing a declining market need to be very aggressive and price just below what the market “says”…or they won’t sell.
Thinking of selling? Please give me a call. I would welcome an opportunity to discuss the market, recent sales, properties on the market and show you how we price homes. I can help you with every aspect of your relocation: 865 389 2551 or office: 865 690 4300.
Thinking of moving? Call today! I can help you with every aspect of your relocation: 865 389 2551 or her office: 865 690 4300.
Please visit my web site: http://www.LaurelGrandle.com. You can begin the search for your perfect home right there!
Laurel Grandle sells homes throughout the East TN Area, including Knoxville, Karns, Farragut, Halls, Powell, Loudon County, Knox County.
She specializes in Lake Front Properties, Luxury Homes, Historic Homes, New Construction and she is an expert at matching buyers with the right house, regardless of the area or price range. She has over 25 years of experience and has helped thousands of clients with their real estate needs.
Here is what some of her clients have said about her recently, “Laurel has an unlimited amount of patience. My family has very specific needs and she understood them and worked with us until we found the perfect home at the right price. I don’t think anyone else would have done that for us and we’ll always be thankful we found her and worked with her. She’s wonderful!” Margo
“Laurel has accommodated us on many occasions very quickly, as our schedules change all the time. She was always understanding of the time and date changes and she helped us find a great house.” Williams
“Thank you! It's wonderful having you as our agent and we both think you're a terrific person. Bob was right when he said we'd love you.” Joe
“Laurel really knows the area and the market. She didn’t waste any time…she showed us what we ask for in the location we wanted and made the whole move a very good experience for our family”. Robert
“Before we wrote an offer, Laurel did a detailed market analysis for us and discussed it with us so we understood what a fair price would be. She went over the entire contract in detail and clarified everything for us. We purchased with confidence and we’d never use anyone else IF we ever decide to sell!” Anne
Exit Realty Knoxville (each office independently owned and operated) is your number one resource for all real estate needs, including listing, sales, referrals; our EXIT agents are committed to serving you—put us to work for you: 865 690 4300.
direct: 865 389 2551
