Real Estate Tip of the Week: Pricing a Home

You’ve got the client – success!

Now, you’ve got to list the home.

If you’re a new real estate agent, this can seem incredibly intimidating. You don’t want to price too high, and you don’t want to price too low – so, how can you list your client’s home right, the first time?

It’s important that you understand your client’s needs before diving into the listing. You should know why they want to move and what their timeline is for moving. Once you understand your client’s motives and wishes, you’ll be able to better serve them.

Before you sit down with your client to go over your listing price, you’ll need to do some research.

Days

You’ll want to do a search of comparable homes in terms of square footage, bedrooms, views, upgrades, amenities, condition of the house, and any other special features. When researching, look at homes currently for sale or that have sold within the last six months in your client’s neighborhood.

Competition

Take a glance at some of the other homes listed in the area. How many homes are going up for sale, what are their price points, and what features do they have to offer?

List-Price Ratio

This ratio portrays the difference between the original listing price and the closing sale price of the home. Again, research the comparable homes in the seller’s neighborhood.

New Construction or Developments

It’s important that you stay current with house trends. You should learn about any new construction financing and/or incentives that might take potential buyers away from your listing.

Ideally, researching should take no longer than three to five days. Be thorough and precise – and make sure you clearly explain to your client your reasons for the listing price.

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