Pricing a house to sell is a mystery to many folks. Here's some clarity on how it all works. This content is courtesy of my AR associate, Alan May.
The general public believes that the Realtor determines the price. Particularly the online general public (and isn't that really everyone these days?) "Those damn Realtors, they're always pushing the prices up and up so they can make more commission" or "Those damn Realtors, they're always setting the price real low to make their job easier".
The buyers believe that the seller determines the price "What an unrealistic seller, pricing his home so far over the market" or "What a fool, he's priced it too low... that's going to sell in a minute".
In reality, it's typically a blend of both.
The Realtor does his/her research and presents the owner with a list of comparable homes in the area that have sold recently (solds), that have recently gone under contract (contingent), and those that are currently on the market as your competition (Actives).
In comparing all of those (Solds, Contingents and Actives), weighing their positives and negatives, the Realtor and seller come up with a price, based on the seller's motivation, sense of urgency, and financial need.
The real estate market is a living market... just like the stock market... it doesn't rise and fall quite as quickly as the New York Stock Exchange... but it does rise and fall... sometimes daily, based on recent sales and listings.
Unfortunately, pricing is not an exact science. Sometimes it's more of a "feel"... and that's where a Realtor's experience can really be important.
ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779 Cell: 847.924.3313 Email: Almay@aol.com
Evanston Real Estate & North Shore Real Estate • Licensed in IllinoisDo not copy the content of this blog, without first contacting the author for permission.
Reblogging IS allowed. All other use is strictly prohibited without express permission from me.