How does one really know what their home is worth? It's a question that is asked of us on a very regular basis obviously! It is also the most misunderstood answer that we have to deal with. When we have a phone call to come over to a client's home to evaluate their house, in many cases the client is asking more than one agent (usually three) to give them a price. Several things happen when this is done, and I think you should be very aware of it. As listings are usually scarce in town, you can be assured that out of the three agents you call in, at least one of them is going to overprice your home because they know that most people will take the agent that gives them the best price. This is probably one of the biggest, most frustrating mistakes that you can make. When your home is overpriced, you fall into the category of "spin off". This means that the showings you get will not result in a sale, but will result in attracting clients in that price range who know that your property is overpriced, and then want to see what is really available in that price range, and hence we get a "spin off" client from an overpriced home. Not great for you - but not bad for the sales rep! You can prevent this from happening if you have your wits about you and know what to look for when you have agents in to give you a price. Prices are set on homes by PAST sales of similar homes in similar areas. We adjust for the current market, how your home shows (this could be either up or down) and what is currently on the market in that price range. We do understand that everyone has an emotional tie to their home - and it is very hard to be honest and accurate with people when their hearts are involved - but we must do that if we are doing our job right! Your agent of choice can help you come to a marketable price by doing a market evaluation. Now, I don't mean just having someone walk through your home and smile at you and say your home is worth this many $$$. Ask him or her to show you figures to back up the figure that is quoted. Ask lots of questions about the homes that have sold - particularly the condition of the home, the extras and the location. A home that looks just like yours does not necessarily mean that yours will sell for the same price. Your rep should know - and if he or she does not, ask for them to find out more information and get back to you before you make a commitment on the price of your home. If you do indeed have more than one rep price your home and one price comes in much higher than the others - your antennas should be up quickly. Ask why and how that price was reached, and they better have some pretty good answers to substantiate that price. Remember, above all, put your emotions in the closet for now and remain sane! When you finally have a good figure to work with, then you can choose your rep. Keep your wits about you - it is worth it in the end "frustration factor"!
The Hills Team! People First. Performance Counts!