Pricing a home properly is critical to the success of a home sale. A properly priced home always sells, while an overpriced home usually does not.
The advantages of pricing a home properly offer several benefits, one of which includes selling it in a timely manner to avoid the inherent inconveniences that come along with a home sale (i.e. constantly cleaning up, making everything look its best for every showing, and having to be absent during the showings and open houses (including kids, dogs, etc.)). Therefore, getting a home sold in a faster period of time is not only easier, but more importantly, financially beneficial because a home will receive the most attention and highest buyer interest when it is first listed for sale.
When a home is priced too high, agents and buyers will label a home as “overpriced” and wait to see if someone else will “over- pay” for the home. In most cases, nobody does. A homeowner then needs to endure all of the inconveniences, for a longer period of time. And adding to that, the result is typically a lower sale price, because the home has now sold with lesser interest than when it was first listed for sale.
In order to price a home properly, an accredited real estate agent that is familiar with the local real estate market will thoroughly review with a homeowner a Comparative Market Analysis (CMA). A CMA provides data for comparable homes that are on the market, in escrow or have recently sold. This data helps the seller understand how agents, appraisers and buyers are going to evaluate a home’s value and assessing this information will suggest the smartest asking price for a home.
For a FREE Comparative Market Evaluation (CMA) of your home, call Robert Radcliffe at 310-317-9900.
Most homeowners believe all agents do basically the same thing.
If this were true, then all homes would sell.
Also, most homeowners believe that by meeting one agent from one company means that that was all that specific company has to offer. I have been told from potential home sellers, “I am already meeting with ABC Real Estate Company” or worse, “Our friend just got a real estate license. We thought we would give him/her a try.”
Be aware that all agents are not alike, even within a brokerage house. Brokerage firms give agents boilerplate methods of how to market a home, but it is up to the individual agent to create and master custom marketing plans. And what’s even better?
The ones with a supporting staff. This will insure the home’s marketability and a successful sale.
The difference in representation can either make, or cost, a homeowner hundreds of thousands of dollars ... or more.
It is important for a homeowner to understand that the way we live in a home and the way we sell a home are two totally different matters.
Having a staged and “show-ready” home is best accomplished
by first consulting with a talented and forthright agent that will
explain and counsel a homeowner on how to “stage” a home for
sale; A critical step.
A “show-ready” home will help with the sale and it will sell for the highest price because it taps into the buyer’s emotions. When a buyer sees a home that they fall in love with, “from floor plan to furnishings,” they will typically pay their top dollar price for that home.
Access and Showings
Understanding how buyers view homes is important.
One of the toughest obstacles when working with our buyer clients is scheduling their showings, which is typically arranged with a listing agent.
Some agents have not properly informed their seller clients to understand that buyers want to see the home on their (buyer) schedule because that buyer may buy another home in the meantime.
To avoid this unfortunate possibility, it is helpful to understand the mindset of buyers and their agents:
If a buyer schedules to view several homes in a day (not including yours) and they see a home they love, how likely do you think their agent will say, “Before you buy this home, I need you to see one that is difficult to show?” This is not going to happen. Why should it? A buyer loves a home and is ready to buy it. And what adds to that disappointment? What if that buyer was the most eager and would have paid the most amount of money for your home ...if only they had seen it?
This will typically happen when listing agents tell the homeowner they will be the only person showing their home. I understand this sounds great in theory; but in reality, it does not work for the benefit of the homeowner wishing to sell their home.
Here are the facts: If an agent has more than one listing, (you would hope they do, otherwise they are not active in listing and selling homes) and they have a request to show a home, there is the high probability the agent will have other appointments during the day (i.e. spending a day showing other buyers homes, attending inspections, meeting with another client, etc). An agent cannot duplicate themselves and sadly for some homeowners, the buyer that could have been their best bet, ends up purchasing another home. This experience alone has made a significant difference in getting homes sold when other agents failed.
In almost all occasions when I listed a home previously and unsuccessfully listed with another agent, I heard my new clients say, “I cannot believe how many showings we now have since we have listed with you. We did not have half the amount of these showings before.” The reason, my team and I created the most effective system to show a home and will be happy to explain this easy process.
A real estate agent’s ability to communicate the correct information to the brokerage community and buyers is important. The opposite is also true. Poor communication equates to poor results.
Sales are either delayed or prevented by some listing agent’s inability to communicate.
Some agents are simply uninformed or unable to provide import- ant information on a home that was needed to help it sell. I have also witnessed listing agents say, “I do not know the answer to that question, and you will have to do the research.”
Bottom line: When it becomes too difficult to buy (anything), people lose interest. The same holds true when buying a home.
Other examples of poor communication: A listing agent presenting false information, which can potentially lead to a legal dispute, or, to the benefit of a buyer and disadvantage of the seller, the listing agent shares too much information. When selling a home, choose an agent that you are confident is a good communicator and one that can properly “sell” the best features of your home.
As disappointing as it can be for all involved, sometimes the simplest reason that can prevent a home sale is a matter of timing. An example: A buyer needs to close in 30 days, but the seller cannot move until 60 days.
I have witnessed unsuccessful negotiations because of this small yet important issue, and as you can imagine, there are many other terms that can get in the way of a transaction.
To avoid losing the sale, an experienced agent is better equipped to explore every option and can typically find a solution to every dilemma. This is when your agent’s experience does matter.