Excitement about the idea of selling your home and the possibility of making some dreams come true with the money to be made, causes some sellers to choose the real estate agent that recommends the highest listing price. Don’t make a costly mistake. True market value is what your home will sell for and pricing your home too high when it’s first listed will likely cause you to miss out on the opportunities you are hoping to realize.
Choose Your Real Estate Agent Wisely
When your home first goes on the market there is an opportunity for it to draw interested buyers simply because it’s a new house on the market. An agent who isn’t local and experienced in the market where your home lies may miscalculate the actual value and suggest you price your home higher than other agents in the area recommend. If one suggested list price is sticking out above all the others be aware that deciding to list at this price could be a costly mistake.
Choosing an agent based on the highest suggested price could be a win, but it could also be a costly mistake . What can happen is your home might sit on the market for 90 days or more without any real prospective buyers bringing offers. If this happens you lose the time frame where your home has a fresh appeal. Once it has been sitting for awhile agents and buyers will lose interest until the price drops to whatever the true market value is for that location. Meanwhile, you have been going through the headache of continuing to pay mortgage payments, keeping your home extra clean for showings and keeping the home in top condition for months without having any serious interest or qualified buyers viewing the home. If the market changes while it is just sitting, and the value of your home decreases during this time, you will have missed out on the opportunity to sell it when it was actually worth more.
Pricing a home slightly below market value is less of a concern because it will create competition for the home and likely cause you to receive multiple offers, some of which will be over the asking price. In other words if you price your home a little bit too low it will probably end up selling at market value. But possibly the worst decision you could make is to choose an agent based on them suggesting the highest sales price for your home. You could end up dropping the price again and again giving the impression that there may be something wrong with the home. And at the same time you will be losing a lot of time, energy and money while waiting for months to realize your goals.
When the Price is Right! As a seller there are things you can do to make sure you are in the correct price range. Your real estate agent will do a Comparative Market Analysis. (CMA) And if you like, you can do one too. The more you understand about the process the more informed your decisions will be regarding the asking price. When selecting comps use homes that have sold within your area as recently as the last 3 or 4 months that are about the same age, square footage and contemporary feel. If the house that sold across the street has been updated and remodeled but your home has not, then the price will need to reflect that.
You’ll also want to look at active sales, pending sales, and compare the actual sold prices to the list prices to see how many days the comparable homes have been on the market.
Making sure the price is in the right range is a skill and an art that many agents who discount their commission just haven’t mastered yet. So do your own research but also know that working with an experienced local real estate agent can truly allow you to get the most money possible for your home.
Selecting a Listing Agent
Sometimes agents who discount their commission are not full service agents but are still desperate to acquire your listing. When interviewing agents be sure to discuss their full marketing plan. Get some references from family and friends if you can. You also want to make sure your agent has many years of experience and is local to your area. Someone who is local will have a much better sense of the market that an online agent who isn’t regularly selling homes nearby. Does the agent you are interviewing strike you as an honest person who will strongly negotiate on your behalf? Will they communicate frequently and effectively? These are some of the things many sellers consider when looking for a good listing agent.
Texas Best Homebuyers
We have more than 20 years experience in the real estate business in North Richland Hills and surrounding areas. Given our name you might be surprised to know that we will happily list your home on the Multiple Listing Service (MLS) and work closely with you to reach your desired goals. We offer all the services that any other top agency offers in terms of marketing your home and will use our expertise to get you the most money possible for your property.
There are many reasons why some people may prefer not to list their home on the MLS and would rather receive an all cash offer instead. Either way we are here for you and happy to be of service. And, either way we will do everything we can to make the entire process of selling your home as easy on you as possible. Call or Text us at (817) 808-4911 to discuss your property with us today!