The asking price is the most important decision in a sale. Price too high and the home sits, buyers wonder what is wrong with it, and you often end up selling for less than if you had started lower. Price too low and you may leave money on the table, although in a busy market strong demand can push the price back up. Here is how we approach it.
Start with what has actually sold
We begin with recent sales of similar homes nearby, usually from the last three to six months. Asking prices of homes still on the market are useful for understanding the competition, but they are hopes, not results. Closed sales are what appraisers and buyers' agents will look at.
The best comparisons are close in location, size, age, condition and lot. In practice, no two homes are identical, so we adjust for the differences: an extra bedroom, a pool, a view, a renovated kitchen, a busy road.
Be honest about condition
This is where sellers and agents most often disagree, because it is hard to be objective about your own home. We walk through it with you and note what a buyer's inspector is likely to flag. Sometimes it is worth fixing things before listing; sometimes it is better to price for them and let the buyer decide.
A pre-listing inspection can help here. It costs a few hundred dollars, tells you about problems before buyers find them, and lets you either repair them or disclose them up front. Buyers are more comfortable making strong offers when the surprises are already out in the open.
Read the market you are selling into
We look at how many similar homes are for sale, how quickly they are selling, and whether they are selling above or below asking. In a slower market, a realistic price matters more, because buyers have choices. In a fast market, pricing at or slightly below value can attract several buyers and lead to competing offers.
Timing matters too. In most of our areas, spring is busy. Palm Springs is busiest in the cooler months, and the Lake Tahoe market follows the seasons in its own way. We will tell you whether waiting a few weeks is likely to help.
Think about how buyers search
Buyers search in price brackets. A home listed just above a round number, for example, can be missed by everyone searching up to that number. We look at where your home will appear in searches and whether a small change in price puts it in front of many more people.
Why the highest number is not always best
It is natural to want the agent who suggests the highest price. But an inflated price usually leads to fewer viewings, a longer time on the market and price cuts later. Each cut tells buyers the home has not sold, and they adjust their offers accordingly.
We would rather give you a realistic range and explain how we got there, with the sales we used and the adjustments we made, so you can judge it for yourself.
After the home is listed
The first two to three weeks tell you the most. We track viewings, feedback and online interest, and we review the price with you at agreed points. If there is little interest, we discuss what the market is saying rather than waiting and hoping.
If you are thinking about selling, we can prepare a written price opinion for your home, with the comparable sales, at no cost and with no obligation to list with us.
