Should you choose the Realtor with the highest list price?

By
Real Estate Agent with ERA Blanchard & Rossetto REB.0790778

If you are interviewing Realtors, should you go with the one who tells you the highest list price?

Let’s pretend that you just met with three different Realtors and they all gave you different prices, which is highly likely. After all, even if you hired three different appraisers, you are almost certain to receive three different price opinions. While those three different opinions should all be in the same ball park, they will all still likely be different. The reason is because, when it comes to pricing a home, there is no standard “5+5=10”. It’s more like “5+5= somewhere between 9 & 11.” If a someone is telling you “5+5= somewhere between 15 & 20”, that should set off some red flags.

Of course, it is possible that your home is just worth more than you realized but before jumping and hiring someone solely based off their higher listing price, ask them some questions. How did they arrive at that price? Perhaps they can justify it to you but if it seems too good to be true, it probably is. After all, if they can’t justify their numbers to you, how are they going to justify and defend your asking price to a buyer? The answer is, they’re not.

The foundation to pricing a home starts with using the right sold comparables. For example, you wouldn’t want to compare a colonial style home to a ranch style home. They’re just too different and the numbers would be too skewed.

The next step is using the right monetary adjustments for all the differences between your home and the comps used. For example, why would your 4-bedroom, 2 full bath, 2500sqft home with a 2-car garage sell for the same amount as the 3-bedroom, 1.5 bath, 2000sqft home with no garage down the road? It doesn’t make much common sense. What needs to happen are individual price adjustments for each aspect that is different, just like appraisers do. Adjustments are the key. Otherwise, you have a higher risk of overpricing or underpricing your home.

It’s important to do your best to pinpoint your true market value from the start because it will help defer future headaches such as your home not appraising, sitting stagnant for too long and now buyers are starting to wonder what’s wrong with it, paying for more monthly carrying costs than you originally anticipated or you simply never sell.

You must also remember that the market is the market. Meaning that you, nor your Realtor, have any actual control over what your home is worth. That’s not to say that great marketing won’t bring more attention to your property, which can result in a higher offer but, the bottom line is, buyers don’t want to overpay for a house. Once in a while, sellers “hit the lottery” and get more than they should and, likewise, sometimes sellers get less than what they should but, most of the time, they get what they should.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
Connecticut
Tags:
selling
market value
price
advice
eastern ct
listing home

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,733,069
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

The market (buyers and sellers) determine the end price, not the agent.

May 19, 2018 12:12 AM #1
Rainmaker
3,481,654
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ashley, great questions for homeowners to think about.  Pricing a home too high can leave a home on the market way too long.  Welcome to ActiveRain.

May 19, 2018 04:46 AM #2
Rainmaker
3,549,307
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Choosing an agent should be done with a little more                 diligence                       Than list price only

May 19, 2018 09:52 AM #3
Rainmaker
455,178
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

I tell sellers that they need to look at the complete picture and who will put their needs ahead of their own.  Pricing is important, but strategy is key. 

May 20, 2018 07:06 PM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
5,362

Ashley Staub

Residential Real Estate Needs in Eastern CT
Ask me a question
*
*
*
*
Spam prevention