One of the most essential, relevant reasons, it generally makes a great deal of sense, for homeowners, to hire a quality, professional real estate agent, to assist in marketing and selling their home, unless/ until, the seller pays attention, and heeds the advice, of this individual, it will rarely result, in the most desirable circumstances. There is, often, a somewhat, fine – line, between over – pricing the listing price, and getting the best possible price, in the shortest period of time, with a minimum of stress and/ or hassle. Homeowners should seek representation, from someone, who justifies, and suggests a Listing Price, based on the competition, and the local real estate market, and presents a clear – cut, Competitive Market Analysis, to explain and justify it. Human nature, unfortunately, often is greedy, and far too many, hire an agent, who suggests the highest listing price, rather than the one, which will net, the best results. This article will attempt to briefly examine, consider, and discuss, 5 considerations.
1. Market conditions: Depending on market conditions, and especially, the specific nuances, of the local area, strategy should change. We generally divide these into a sellers, buyers, and neutral market, and things change, based on these considerations. In addition, there’s a need, to consider past trends, present circumstances, and probabilities, into the future. When there are more homes, for sale, than potential buyers, prices must attract qualified, potential buyers, to consider yours. When there are more buyers than sellers, one can be more aggressive, in terms of pricing. Neutral markets require fully considering, strengths and weaknesses, and coming up with a strategy, which considers ramifications, and competitive forces.
2. Interest rates and taxes: Interest rates determine mortgage rates, and there is generally an indirect relationship, between rates and prices. When mortgage rates drop, it causes the monthly carrying costs, to decrease, which means, buyers can afford to pay more. When they rise, the contrary occurs! Real estate taxes, become part of this monthly expenditure, and, thus, are relevant, to determining, how to price a house, to sell.
3. Competition (CMA): Only when one uses a professionally designed, Competitive Market Analysis, and focuses on the actual market conditions, is pricing, generally, determined effectively! Sellers must select an agent, who explains why he prices, in some manner, rather than simply trying to acquire a listing, by over – flattering the homeowner.
4. Niche marketing: Know the competition, and the specific market, most apt, to consider a specific property! This is known, as effectively using niche marketing!
5. Perceptions: Quality real estate agents make certain, they articulate the difference between a homeowner’s perceptions, and an objective evaluation, of the actual value, including strengths and relative weaknesses!
Since there must be a balance between getting the best price for a home, and the listing price, it’s important to carefully review, and evaluate, which real estate agent, you should hire! When agents and clients share a vision, and proceed, as a team, the homeowner benefits.