Setting the home price for optimal sale is sometimes the most difficult part of the realtor-client relationship, but perhaps the most important. This is why you always choose a realtor with whom you feel comfortable and one who you absolutely trust with your business. It’s also the reason many of my clients become friends. The trust is paramount to the process. However if you are new to home selling or you aren’t sure what the price should be, it can be a difficult decision as of course you want to protect your investment. A recent The Wall Street Journal outlined several different points of view on setting the home price. I thought I would share some of their interesting insights.
Setting Your Home Price: Is it Subjective?
One popular opinion about home listing, but not necessarily a mode I subscribe to, is to lowball when setting the price. Alex Hickman told The WSJ that he lowballed and it worked.
Hickman set his asking price below market asking price for his neighborhood and got six offers in four days. Said Hickman:
We strategically listed it under market and tried to create kind of a frenzy.
But it should be noted that he went against his Redfin real estate agent. His agent, Rebecca Walter had told him this was a bad idea, one she initially counseled against. Walter says:
It creates a havoc that doesn’t serve anyone well. A low asking price doesn’t necessarily increase what buyers offer since they are more willing to compete on other terms of the contract.
Was she wrong or did Hickman just get lucky?
Listing Your Home: The Whole Picture
How important is it really that the list price be on target?
The first few weeks are the most important part of the listing. When a home is “launched” all eyes are on the property-agents, buyers & investors. Pricing is something that can’t be taken lightly. My closed sales track record show a 98.5% to list price which means setting the price to sell is indeed very important.
As for my approach, I subscribe to a more “whole picture” approach when it comes to setting a home listing for sale. A combination of detailed marketing, current housing market research, and buyer psychology, is more in line with my home-listing price philosophy. But ultimately, it’s my relationship with the individual clients and assessing their needs that drives my approach.
Do You Like Your Real Estate Agent?
In the end, everyone has an opinion but the one constant that I think you can’t ignore is the client-agent relationship. Always, choose a realtor whom you trust. Choose someone with whom you would be comfortable having a conversation. Choose an agent who lives and works in the neighborhood. And finally, choose someone with a proven track record. With all of the volatile aspects present in any housing market, these factors are absolutely under your control.
If you are ready to sell your home, contact Lydia Gable today. A top ranked real estate agent in Westlake Village, she can help you determine what your home is worth and then work together to price and pitch your home competitively and attractively for today’s market. Call Lydia Gable today at (818) 934-8902.