One of the most crucial aspects of building a successful partnership between a real estate agent and a client is establishing the right price for the property. When both parties align on pricing, the process becomes smoother and the sale accelerates.
A frequent challenge in real estate is a client setting an unrealistic price for their home, which can be counterproductive. While some believe they can simply lower the price if needed, the reality is that once a home is listed high, it can hinder the sale and impact the property’s market appeal.
Setting the right price from the outset is crucial. We often decline listings with unrealistic prices because an inflated asking price serves no one well. It usually results in necessary price reductions and client dissatisfaction.
Pricing your property correctly from the start is crucial. If your home isn’t priced to attract offers, it will sit unsold. The longer it lingers, the less appealing it becomes, giving buyers leverage. They may start to think, if this home isn’t attracting interest, I’ll offer less and take it or leave it. But most buyers generally avoid making offers significantly below the asking price because they think the seller isn’t motivated. With today’s easy access to market data, buyers already know a property's value before even visiting, so they prefer to make informed offers that align with the home's market worth. Look at pricing your home from a buyer's perspective. Would you be willing to pay more for a property if it offered unique features or advantages, despite being priced above its current market value and local area trends?
Professional appraisers offer an objective assessment of your home's value. Their evaluations are based on detailed analysis of your property’s characteristics and recent sales data. If you insist on pricing your home on the higher side, an appraisal can provide a solid foundation for setting your price and help justify it to potential buyers and lenders.
If your home has been on the market for an extended period without attracting offers, it may be time to reassess your price. Factors indicating the need for adjustment include lack of showings, minimal buyer interest, or feedback from potential buyers.