The question we’re most often asked by both buyers and sellers concerns pricing a home. Today, I’ll discuss some of the intricacies and complications of pricing your home.
Looking for a home? Click Here.
Selling your home? Click Here.
Pricing a home is complicated. Every market is unique, but in the Highland Lakes, we don’t have subdivisions of four or five different house plans all built at the same time. In those circumstances, it’s far easier to develop a price.
In our market, there are many more unique homes built that have a wide variety of ages and locations. To complicate matters, our MLS doesn’t always make it easy to find the data we need; sometimes it’s buried.
You can’t just take an average for your home’s category and apply it to the square footage and expect that to be a fair market value price. For instance, you can often look at a current MLS number, but just because it says a listing has been on the market for six months, it doesn’t necessarily mean that that home hasn’t been listed before with other agents and hasn’t undergone a number of price adjustments.
Real estate agents don’t control prices—market conditions control the price.
Sometimes, overeager agents, or even experienced agents, in their enthusiasm, will agree to list a property at a price that’s way too high to win a listing. But remember, real estate agents don’t control prices—market conditions control the price. When we dig into listing history, we even see houses in today’s great market that have been listed for two or three years starting at far higher prices.
So why is this important for buyers to hear? It’s important because it demonstrates a seller’s motivation. For sellers, it’s important to know so that they can adjust their marketing and get that house sold.
If you have any questions about pricing homes or other real estate matters, feel free to give the Busse Group a call. We’d be glad to answer your questions, possibly in the form of a video for this blog.