For a realtor, pricing your client’s home correctly is the first step in ensuring it attracts attention, shows constantly, and eventually sells. In order to determine the best price for the homes you plan to sell there are seven methods of comparison that you can use to successfully value your properties.
1. MLS Comparables
Check houses of similar style, age, size, or which are located within the same neighborhood (less than one half-mile)
2. Square Footage
Comparable properties should not be less than 10-15% the square footage of your property.
3. Sold Comparables
Check recently expired listings to gauge the original price, new price (if relisted) and if the property was upgraded.
Check recent expiries for similarities in price, location, or broker. Did the house failed to sell because of poor marketing?
5. Pending Sales
Contact agents with pending sales and if they disclose the price, compare it to days marketed, previous reductions or upgrades.
6. Active Listings
Visit comparables, determine if they show well, and compare them to your property’s asking price.
7. Current Market
Check the current market: the more properties, the more selection, making it a buyer’s market. In a buyer’s market, price 10% lower, in a seller’s market (less selection) price up to 10% higher.
Remember, fairly and accurately pricing your client’s home the first time will maximize all of your marketing efforts.