Real Estate Tip of the Week: How to Price a Home
First comes the client, then comes listing 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.
How can you list your client’s home right, the first time?
Before placing a price tag, it’s important that you understand your client’s needs. You should know why they want to move and what their timeline is on moving. Once you understand your client’s motives and wishes, you’ll be able to better serve them on what they want and need.
As their go-to agent, you’ll want to do some thorough research before sitting down with them to discuss the listing price.
Peek at what some of the other homes are being listed at in the same area as your client’s. How many homes are going up for sale, what are their price points, and what features do they have to offer?
Research comparable homes in terms of square footage, bedrooms, views, upgrades, amenities, conditions of the house, and any other special features. You’ll want to look at the homes currently for sale or that have sold within the last six months in your client’s neighborhood.
This ratio displays the difference between the original listing price and the closing sale price of the home. Again, research similar homes in the seller’s neighborhood.
New Construction or Developments
Staying current with house trends and features is a critical part of your job. You should learn of any new construction financing and 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.