“Face the facts, mom! You’re not getting any younger.” Says my 7 year old daughter towards my raised eye brow and smirking half grin …
That was a while ago, (haha!) I was in my early 30’s and apparently completely unaware of my own inaccurate perception of my age. Thankfully she was there to keep me on track and I am reminded of this exchange anytime I find myself “caught” unaware of some other blatant fact around me.
Which brings me to the topic of the day; Pricing properties.
Properly pricing homes for sale is in arguably one of the most important Realtor skills, right? I use a combination of comparable properties and local market stats to determine the price the home will most likely sell for. I will then provide the seller with this information along with a price range, based on the properties condition that we should list the home for. Most often, the seller will want to list at a price higher than my top end amount, sometimes only rounding to the next even numbered increment. (totally reasonable) Other times a seller will reach for the stars and state “Lets just see if we can get this much, we can always reduce it.”
I respect this thought process because I understand that home ownership is an investment and every seller wants to make sure that they are getting the most out of their investment, right? Of coarse! But please know, that we currently live in a market where it is almost impossible to under price a property, if it is properly prepared. (a topic for another day!) Buyers will pay more if they love it and believe that they are getting a fair deal AND your transaction process will be far more amicable because of it. Overpricing is detrimental to your buyers perception which can impact time on market, offers and even inspection negotiations; dramatically impacting your bottom line. And lets not forget Appraisal! Your buyers lender will require the property appraise at or above the sale price and since appraisers use a similar process to determine price as your agent will … there is a good chance you may find yourself back at the table negotiating on price.
So hey, listen to your agent or get a second opinion if you must, but be realistic with yourself if for no other reason than sanity’s sake.