Nov
07

4 Things Agents Consider When Setting Listing Prices

remax-blog-sold-sign2

There’s no online calculator for setting the perfect listing price for your home. It takes experience, market savvy, and even a bit of psychology. A strong listing agent can help you set the right, most competitive price for your home. Here are a few things they might look at:

1. The competition
Your agent will look at the prices of similar homes in your area that either are currently listed or sold during the past few months. They’ll take into account how many days the properties were on the market and how the listing prices for those homes differed from the final sale prices.

2. Market trends
What’s affecting the market in your neighbourhood, and your region? Your agent will consider national factors that shape the real estate market, such as possible rising interest rates, as well as local factors, like whether the average home price in your neighbourhood has been rising or falling. They’ll also think about things such as plans for improving local amenities, like parks and recreational activities. All can increase the value of your home to a buyer.

3. Your neighbours
Although a home the same size and age recently sold for a high price, your own place might not fetch the exact same fortune if, say, junky cars continue to proliferate in your neighbour’s driveway. On the flipside, if the grass is in fact greener on the other side of the fence, your home’s value may be higher due to your neighbours’ curb appeal.

4. The Goldilocks price
Listing your home at a price that’s “just right” from the start is critical to selling it quickly, for the best price. Overpricing your home, and then dropping the price a few times while it sits on the market, could lead to a lower final sales price than if the home was priced appropriately from the beginning. And, of course, setting a price that’s too low leaves money on the table.

Wondering how much your home might be worth in today’s market? Find a local RE/MAX agent who can explain how these and other considerations could factor into a pricing strategy for your home.

~ Blog by RE/MAX