CLOSED! We just completed our last closing of 2019! Thanks for trusting us with your sale, Mick! It's been a great year and we can't wait to handle all your real estate needs in 2020! HAPPY NEW YEAR
The Power of Knowing How to Price
To be honest, when we look at selling a property, there are really only three things that matter: price, appearance, and marketing. When all three aspects are done correctly and used to complement each other, the result is always advantageous for the seller.
That first part, pricing, is so important to nail. I know the market pretty well, and that knowledge of proper pricing always gives an edge to give the clients I represent.
I’ll share an anecdote to illustrate my point. Recently, we had a referral come to us with a truly unique property; there were no comparable properties sold in the past few years to reference for market value.
These clients had also recently received an appraisal that came in at about $325,000. As a former appraiser myself, I know that appraisals are just an opinion of value. While the sellers naturally expected to hover around that appraisal figure, my experience told me that the home was worth significantly more.
Some agents might just look at the houses nearby and use those recent prices as a gauge, even though they’re aware that the homes in this neighborhood were all built very differently from each other and throughout different time periods. Again, this would put the value at around $320,000.
However, I noticed that there were some quality adjustments made to this property that needed to be factored in. For instance, there was a walk-out space—a rarity for these types of homes—and some other notable adjustments to open spaces.
The sellers were so surprised that our listing for $375,000 was secured via contract on the first weekend. But this shows exactly why it is imperative to price your home correctly. You may be in a situation where your home could actually shape the market rather than be at its mercy.
Don’t miss out on hundreds of thousands of dollars; start right by pricing right with an expert’s help. If you are unsure about what price you should list your home at or have any other real estate questions, feel free to give me a call or send me an email.
Luke Angerhofer is the founder of and active real estate agent at Prestigio Real Estate and the President of Grail Capital. He is a former appraiser and active investor which has allowed him to garner....