Representing both buyers and sellers since 1998 I have been heard a lot from my home sellers, potential and actual. One of the things that come out during some listing presentions from the home seller is the following statement, “But, other agents agree on a higher listing price.”
It’s very common if I don’t have a previous relationship with the home seller and if I’m not referred to them directly, to have the Santa Clarita home seller I’m being interviewed by, interviewing other agents.
I usually find out in the interview. From time to time the question comes up regarding my pricing strategy.
In order to do the seller justice, I have to do my research on how much their home will sell for.
These numbers are not arbitrary. They are able to be shown in black and white from factual sources. However, the market dynamics are those items that may impact the sale price, depending.
A perfect Cinderella Comparable Scenario
- Apples to Apples comparison
- Same builder
- Same Year built
- Same bedrooms and bathrooms
- Same square footage
- 3 properties sold(closed) within the past 180 days (within 90 days better)
- Same types of financing used for each comparable
- Within .25 mile or same tract/neighborhood match
These criteria being met is the perfect comparable story. The only other factor that has to be computed is the market direction.
The 6 Points
- Is the current real estate market going up, coming down or flatlined?
- How is the buyer drive?
- Interest rates – rumors – increases/decreases?
- What is the competition with the active real estate listings that meet the same criteria as the ones used as comps?
- Are there any changes occurring on the new home front which may impact competition?
- Economic factors and potential neighborhood changes upcoming?
From the analyzation of these factors, I can come up with a value for your home where the home will appraise at the current market value.
From there we have to develop a sales strategy, dependent on the six points, to establish a listing (marketing) price.
Is the home going to enter the housing market at above the comp value? Maybe our strategy will be to price it under comp value to get multiple offers then to have those offers exceed FMV – Fair Market Value?
Whatever the strategy the expert will provide you, there are bound to be outliers, other agents, who are willing to put the seller in a bad spot stating to them their property is worth more than the other agent’s say it is.
Of course, you will have people saying what you want to hear and those who, at a potential loss to them, tell you the truth.
In a perfect world, everyone would tell you straight. They would give you information concerning your value, how they achieved that value and other information where you would be able to verify their honesty.
We don’t live in a perfect world.
There are some online resources you can use to determine a ballpark value for your home. Just be careful if you are using one of those real estate syndication websites. Stick to the local agent channels for value. Where only a single agent will get any of your personal information. In that way, you can tell them to stand down if they are becoming a bother.
This system will give you a preliminary value. I, Connor MacIvor, am the only one that will see your info. I will reach out to see if I may be of further assistance, if you tell me to stand down, I will stand down.
Remember, some play unnecessary games when it comes to pricing real estate. Choose wisely and make sure you are dealing with a professional. Just google their name and take a few minutes to see how they are placed online and what they are saying about pricing real estate in the Santa Clarita Valley. That will tell you volumes about who they are and their motivation.
I’m Connor and I want to be your Santa Clarita real estate sales agent.