Pricing Your Home for A Perfect Sale

It’s a big undertaking to sell your home. It was a significant investment when you purchased it, and you want to get the best value for it now that you’ve put it on the market. There are many factors to consider when getting the best listing or asking price.

If you overprice your home, you risk having it sit on the market for too long, possibly with no offers. However, if you price it too low, you might end up with low offers that don’t meet your needs.

A situation like this is when the expertise and market knowledge of a Realtor® can benefit you as a home seller. A Realtor® is a licensed real estate broker who is a member of the National Association of REALTORS® (NAR).

As a home seller, one of the most important questions to ask your broker is how to determine your home’s listing price. A Realtor® will consider many factors when evaluating the recommended listing price, including, but not limited to, your home’s size, location, amenities, and property condition.

Factors to be considered

In addition to the specific characteristics of your home, current market conditions can significantly impact your ultimate asking price. A Realtor® is familiar with the local real estate market and has access to a reliable, up-to-date database of comparable listings called the Multi-List Service, or MLS. In Eagle County, Colorado, the local MLS is the Vail Multi-List Service, which is operated by the Vail Board of REALTORS® (VBR).

A Realtor® will look at comparable sales, or comps, in the MLS. Comps are similar properties that have recently sold in the same area and are used to create a comparative market analysis (CMA). A CMA is an estimate of a property’s value based on comps in the market area that have recently sold, are under contract, or are currently active. This research will help your agent determine your home’s suggested listing price.

Mark Gordon, Realtor® and Vail Board of REALTORS® chair, believes that a broker should be knowledgeable about the market within your town, neighborhood, and even your street. Gordon states that pricing and picking market comps must be based on actual market knowledge.

“Vail can be challenging to price due to the nature of the market,” says Gordon. “If you look at the automated evaluations, they are often wrong. A particular property might be on a street that includes a deed-restricted home next to a home that is not. The automated system does not, and cannot, take that into account.”

"It is not a ‘cookie-cutter’ neighborhood,” adds Gordon. “A knowledgeable Realtor will also consider factors like the home’s view or any adjoining property.”

Be flexible

While setting the perfect price is essential, don’t be rigid on the pricing. Your broker might suggest lowering the price, and this is when you should be flexible and open to making any necessary adjustments.

“Adjusting pricing accurately requires significant market knowledge”, says Gordon. “A Realtor is always working for their clients’ best interests. If the listing price should be adjusted, it is purely to hit the clients’ goals - whether to sell quickly or maximize revenue.”

“The current market in our area is a mixed market,” adds Gordon. “A home priced at perceived value is still getting multiple offers, whereas a home pushing the price may take longer to sell.”

Your broker will work with you to recommend the best listing price to meet your goals, and you have the final say. However, a key benefit of working with brokers who are Realtors® is leveraging their expertise and knowledge of valuable tools to best price your home.

Your best bet as a home seller is to rely on the expertise of a licensed professional like a Realtor®. They can help you maximize your investment and profit while meeting the local market where it is currently.

“It is important to have a Realtor working with you to accurately determine the pricing and to pick the comparables very wisely,” adds Gordon.

Visit VBR.net to find a Realtor® who is an expert on the Eagle County real estate market.