The Perfect Price Point
Making the decision to sell your home is a tough one, both mentally and emotionally. Determining your home's value is equally challenging. As homeowners, it's difficult not to put too much weight on our emotional equity in our home. Your investment, after all, is not strictly limited to monetary input.
When an agent is approached to give a CMA (Comparative Market Analysis) for a potential listing, they research the comps in the area. Comps are a funny thing though—they look at houses in a similar micro-market that holds a similar tangible value. Many times, pulling comps together takes creativity and time.
Traditionally, when these two numbers the client and the agent bring to the table meet, the homeowner’s is the high figure and the agent’s is lower. How do we as agents with two competing interests of-- 1) wanting to sell the listings and 2) wanting to foster positive client relations --strike a balance?
What it boils down to is the fact that we want to SELL your home, not simply LIST your home. Ah! Yes, there is a significant difference, isn't there? If we have a client who is in no hurry to sell their home then we are perfectly obliged to start at the higher end of what we think your home will sell for and see if there is interest. The price point can always be adjusted if its simply not getting any "bites". On the other hand, if we have a client who needs or wants to sell their home within a certain window of time then we will urge them to price their home more competitively. In our experience, location and price are the two most important factors when trying to sell a home.
Occasionally, (very occasionally) we, as real estate agents, simply have to say no. Let's say, for example, that we do our extensive homework and come up with a home valuation of $200,000 but our client wants to list at $300,000 and simply will not/can not compromise. Our experience and intimate knowledge in the market tells us that we are not doing our client any favors by over-pricing their home and listing it because it will not SELL. We would actually be doing them a disservice by wasting a whole lot of their time (and ours). Remember, EVERYONE'S goal here is to SELL the home, not simply list it.