When it comes for a homeowner to sell their home, they normally interview several realtors. Having the right realtor to represent sellers is extremely important. Unfortunately, many professional experienced realtors sometimes do not get the listing agreement because the sellers do not like what they hear from the realtor. Sellers want to hear that their homes will sell quickly at the highest price. Many sellers do not like to hear when a realtor tells them that they need to remove clutter and spend money in doing minor repairs such as basic window dressing like landscaping and painting prior to officially listing their home. More time than not, and unfortunately, there are a percentage of uninformed home sellers that choose the realtor who is not from the area and recommends the highest listing price. Initial pricing on your home is extremely important if the most important factor for home sellers.
Pricing Your Home
One of the most important factors in selling your home is pricing it right. Over pricing a home is one of the worst mistakes home sellers can make. A realtor will most likely do extensive research on comparables of homes that sold in your area. The realtor will also have homes that are currently on the market and how long they have been in the market comparable to yours and make adjustments compared to your home.
Bidding War For Homes That Are Under Priced
Homes sell for a price the home buyer is willing to pay and for a price the seller is willing to accept. If the subject home has been priced below market value, the home seller will most likely be receiving multiple offers resulting in driving up the price to its current market value. In the event if home sellers price their property too low, the risk is minimal because the market will drive it up. Pricing it too high is a problem because you do not want your property listed for over 90 days. If you price it right, you should be able to get a purchase offers within 90 days of the listing.
Hiring The Right Realtor Who Knows The Area Will Help In Pricing Your Home
I strongly recommend to hire a real estate agent who is from your area and knows the area well. Hiring a realtor who is not familiar with the area and does not have many listings in your surrounding area will not be as effective as a realtor who concentrates his or her business in your neighborhood. Location is key in the real estate business and a realtor who consistently represents buyers and sellers in your local area will know how to appropriately price your home in order to have it under contract within 90 days.
I have a close friend of mine who had his home in the market for the past 6 years. He had over 7 real estate agents as well and recently fired his latest realtor and signed up with a new agent. It is a unique higher end property which is listed for $2.7 million. The property was purchased for $1.20 million back in 2005 and my friend has been trying to sell it for since 2008. Every single one of his 7 real estate agents did not have a single showing in the past 6 years. Not even a call. Marketing? The property was marketed via every available means. All of the 7 real estate agents were all reputable full time realtors who were all top producers. The problem here is that the property has been listed too long and the price is overpriced. The home is gorgeous but the market is dictating that the parcel is overpriced. If he gets a potential buyer, the buyer will see that the property has been listed for 6 years and will be weary of why the property is not selling. In a way, the property has been tainted for being overpriced. Will it sell at $2.7 million? Maybe but the probability is likely not anytime soon. Every realtor has adviced my friend to lower the price but my friend strongly feels that the home is worth every bit of $2.7 million. You cannot be overly attached to your home and have an open mind what the market is. There is a reason why there is not a single phone call of interest.
By Gustan Cho