Agent: When Pricing Your Home, Look at its Value in the Eyes of the Buyer

I have had to present many market analyses that unfortunately were in conflict with what a seller was expecting. Having just personally experienced this recently when trying to sell a piece of property in another state, I realized that there is something important that sellers must consider when hiring a realtor to represent them.

Realtors don’t determine home values. Prices are determined by what similar homes have sold for in the immediate area. When deciding on a realtor, pay particular attention to the comparable sales that are presented. Pricing a home too high is not in the best interest of the seller and should not be the deciding factor in choosing which realtor to hire. The best marketing plans will not guarantee a sale at a price that the savvy buyer is not willing to pay and will delay a closing and possibly produce a much lower offering price.

According to NWMLS records, there were 463 decreases in listing price just on Oct. 27 and Oct. 28. Not all of these were the result of faulty original pricing, however. Many of these reductions are the result of new competition with short sales or foreclosures. Sellers must be apprised of what is happening in their area and understand the consequences to their bottom line. Starting out at the “right” price leads to a quicker sale and is the most important aspect in bringing in that sale.

According to REALTOR.COM, inventory is down 4.38 percent from last month in Seattle with a minimum increase in price. It is down 25 percent from last year at this time according to the NWMLS. Even with low interest rates, good credit and low inventory, sellers are still having a hard time finding the right buyer.

You are looking for a buyer who is ready, willing and, most of all, able to obtain it at a cost close to what you are asking. In comparing prices to similar homes, realize that it is not only the size of the home or the number of bedrooms. Buyers rate the condition of the home. On a recent home showing tour with a buyer, we saw 10 homes in the buyer’s price range. All of them were in need of maintenance. Most of them could have been more appealing with minimal improvements and would have been acceptable to my buyer.

Getting a home ready to sell demands a change in philosophy. The way we live in a home is not the way we sell a home. You need to look at your home through the eyes of a buyer. You have to be realistic in setting your expectations based on the right comparables so that when you do receive that offer your Realtor will have the statistics to prove your home’s worth.