Strange Times...Pricing you home for sale in a volatile market.
This is always a fun topic - Truly, that was my bad attempt at humor... One of the most common questions that we're presented with is "What is my home worth ?" This is such a dynamic question, but also a simple one. As you read on, know that this writing is simply a summary and that a Goldizen, Riley & Co. Agent will be your best resource to answer this question.
Let's clarify one of the most important points - EVERY homeowner wants the MOST for their home. The interesting part to this is that so does EVERY agent that represents a seller. So many sellers take it personally when an agent asks for a price reduction - in a perfect world, agents would ask for a price INCREASE. Always keep in mind that you and your agent make money based on the final sales price, so when your agents asks for a price reduction, they LOSE money along with you.
When you sell your home, a great agent will pull and asses all statistical information about your home, as well as all social, political, and economic data about the sellers geographic area. From this data, a baseline pricing will be created and recommended to the seller. The purpose of this is to set an operable range for the seller to select the sale price the home. This assists the seller from pricing the home out of the market based on emotion or lack of market understanding/experience.
That being said, how does this apply to the current, insane market that we're experiencing?
It doesn't...
What? C'mon, Branden...This doesn't make any sense!
All right, maybe a little, but barely. Play along with me for a minute - How can anyone - Broker, consumer, or buyer, accurately assess the price of a property when banks are accepting a mere percentage of the current market value simply to offset a toxic asset? Simply said, we can't...In this climate, you must find a relative market position based on your Agents analysis and be willing to adjust accordingly.
"Well, what if I can't ?" - I could spend days on this , therefore defeating the purpose of this article, however, right now, you don't have a choice. To answer the question, you have to stay in line with what's happening in your neighborhood. You must, must, stop looking through the eyes of "My kitchen is the most expensive in the neighborhood" or "We've just updated the study" and so forth. The bank asset down the street that has twice your amenities is going for $50,000.00 less without the emotion and minimal terms. Your "wants" and "feelings" have suddenly taken second chair to more aggressive pricing.
That, Dear Seller, is your competition...
I know that it's not "fair" and that it skews the market - believe me, I, if anyone, understand you. For now, though, do your best to flex and stay ahead of the pricing "curve" that the competition has set, dispel any myth about making incredible profit (for now), and exhale. It's time to accept the price that you don't want to hear and move forward, knowing that in your purchase you historically have an upward trend, or...wait.
While no one is promised the morning, know that this too in time shall pass and that "normal", whatever that may be, is around the bend.
Let's clarify one of the most important points - EVERY homeowner wants the MOST for their home. The interesting part to this is that so does EVERY agent that represents a seller. So many sellers take it personally when an agent asks for a price reduction - in a perfect world, agents would ask for a price INCREASE. Always keep in mind that you and your agent make money based on the final sales price, so when your agents asks for a price reduction, they LOSE money along with you.
When you sell your home, a great agent will pull and asses all statistical information about your home, as well as all social, political, and economic data about the sellers geographic area. From this data, a baseline pricing will be created and recommended to the seller. The purpose of this is to set an operable range for the seller to select the sale price the home. This assists the seller from pricing the home out of the market based on emotion or lack of market understanding/experience.
That being said, how does this apply to the current, insane market that we're experiencing?
It doesn't...
What? C'mon, Branden...This doesn't make any sense!
All right, maybe a little, but barely. Play along with me for a minute - How can anyone - Broker, consumer, or buyer, accurately assess the price of a property when banks are accepting a mere percentage of the current market value simply to offset a toxic asset? Simply said, we can't...In this climate, you must find a relative market position based on your Agents analysis and be willing to adjust accordingly.
"Well, what if I can't ?" - I could spend days on this , therefore defeating the purpose of this article, however, right now, you don't have a choice. To answer the question, you have to stay in line with what's happening in your neighborhood. You must, must, stop looking through the eyes of "My kitchen is the most expensive in the neighborhood" or "We've just updated the study" and so forth. The bank asset down the street that has twice your amenities is going for $50,000.00 less without the emotion and minimal terms. Your "wants" and "feelings" have suddenly taken second chair to more aggressive pricing.
That, Dear Seller, is your competition...
I know that it's not "fair" and that it skews the market - believe me, I, if anyone, understand you. For now, though, do your best to flex and stay ahead of the pricing "curve" that the competition has set, dispel any myth about making incredible profit (for now), and exhale. It's time to accept the price that you don't want to hear and move forward, knowing that in your purchase you historically have an upward trend, or...wait.
While no one is promised the morning, know that this too in time shall pass and that "normal", whatever that may be, is around the bend.
Labels: Home Pricing
posted by Goldizen, Riley & Co. at
4:29 PM
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