Unless you are serious about selling, now is not the time to get in the real estate sales business. If you don’t have to sell your home, don’t. And if you don’t need to become a real estate agent, don’t. Why so brash? Because it’s not the time to casually sell or get into real estate. A few years ago was a great time. If you were selling, buying or in the business, you were probably either getting the home of your dreams, selling your home for a great price or making a killing in the market from sales. Now is different and you need to seriously consider your motive before launching into the real estate market.
This article is really for sellers of real estate and real estate agents alike. Both have a significant impact on pricing a piece of real estate. The agent evaluates and comes up with the best price according to comparables and recently solds and the seller makes the ultimate decision on price. But too many agents get greedy and agree with the seller when they say they can’t price it “that low”. The problem with this ends up being the agent gives in thinking, well if it does sell at that price, that’s more commission for me. The reality is, the home usually doesn’t sell at this price and both seller and agent are stuck and frustrated. This doesn’t help the agents reputation or business at all and just irritates the seller.
What both parties need to do is come to a decision together on how to market and price the home. A good agent needs to be clear and firm about how much homes really are selling for. Many sellers simply look at the current market and see what is for sale, not what the home actually sold for. Seller’s feel they can price their home around the same price. But they fail to realize that many homes are selling way below their asking price. Listing agents need to be realistic and tell the sellers, if they are serious about selling, they must be serious about the price.
You must price the home below what people have actually paid for similar. This may hurt a little but if you need to sell, not just WANT to sell, this is the only way to do it. If you price the home lower than a comparable home sold for and to buyers looks thousands less than homes currently on the market, you will sell your home. If you start too high, you will slowly be dropping the price little by little until you are sometimes lower than what you should have started with from the beginning. Knowing this upfront and before hand could save you money and will save you frustrations.