“Pricing a home to sell is NOT and exact science”, were the words uttered by a frustrated home seller in the luxury market. I don’t understand it.
This week I met with a frustrated seller in south Orange County CA. He has been through two agents, one on the low end “do nothing” but MLS and the other on the high end with “all the bells and whistles”. NO SALE so far. He could not understand why his home had not sold and could not figure out what the right price was. I was interviewed by him a year ago and I gave him a price and some suggestions. He chose to list his home 700K over what I advised with a different company. By careful evaluation of the high end market I was able to inform the home owner that the supply of homes in his price bracket was equal to over a year and a half. In other words, if NO other listings came on the market (which is unlikely) it would take a year and a half to sell all of the existing homes in his price range.
Pricing correctly is quite complicated for many reasons. What most people do not realize is that there IS A REAL MARKET VALUE which we call fair market value. The closer a homeowner prices his home to this fair market value the faster the sale will occur. The higher you price ABOVE the market value, the longer the sale time and the lower the final price will be. The real market value of your home can be improved or decreased by the homeowner. One role of a qualified Realtor® is to help the homeowner improve his bottom line.. The proper advice regarding repairs, staging, marketing, showing, blogging and networking can help the sale tremendously. Homeowners need to be coachable.
The formal appraisal process is more of an exact science because appraisers are evaluating past history. Comparable sales can be evaluated against each other and the values adjusted accordingly. The homeowner and Realtor® working together are trying to evaluate the future supply and demand. A full time Realtor® is keenly aware of the pulse of the market and can evaluate what kind of traffic can be expected and what kind of buyers can be expected. Also it is the job of your Realtor® to continue to monitor the selling environment such as supply of homes, new like kind competition, interest rate changes and feedback from the showings.
To avail yourself of an experienced Realtor® who understands the Art and the Science of real home sales, call Ron Buck, Realtor® at 949-456-0505 or contact me here.