Pricing a Property

Sometimes the process of pricing a home can be a stressful. Many sellers feel like agents try to control the pricing process. Some agents want them to list at a low price so it will sell easily and other agents promise that they can get a higher price than the market will support just to get the listing (and then a month later start the price reduction conversation).

My job is to provide a seller with the best information about what their homes competition is on the market and the recent home sales that other agents and appraisers will be looking at. I give my professional opinion of what I would list the home for if it were mine and what I think it will finally sell for. I also consult with the 50+ other agents in my company and get feedback from those that are familiar with the neighborhood for their price opinion.

After I’ve given all of these opinions and information, the seller tells me what price they want to list your property for. I give my honest opinion and the chance that I think it will sell at that price. The seller sets the listing price and as long as I think there is a decent chance of selling the property I will take the listing and support them and their price fully.

Given that it’s my job to represent my sellers best interests, I always try to help them get the most for their property and the best way to do this is to set the price right at the time of the initial listing.

This is an excerpt from and article titled “Selling Price vs. Timing” from the Consumer Reports in November 2002 and it still applies today.

“Setting the correct price is key to selling your home quickly and profitably.

John Knight, associate professor of real estate at the University of the Pacific, in a study of several-thousand home sales over a two-year period in Stockton, California, found that houses whose prices are changed sell for less than homes with no price revisions.

The longer a house sits on the market, the more it is stigmatized in the minds of buyers.”

Another way to look at it could be seen in this blog entry a while back:
Listing Price and the First Week