When you are thinking about selling your home one of the first questions you are likely to ask is “What is my home worth?”. This is one of the most critical jobs of a Realtor in the market – accuracy in pricing. While there are many similar homes, no two are alike, which is where experience and expertise come in to play.
Why is pricing so important in most cases? The majority of buyers will be financing through a lending institution which will require an appraisal as on of the steps of the loan. The appraisal will determine what the bank is willing to lend to you based on the value of the subject of collateral. If your home does not appraise for the sales price, the bank will not lend you the additional funding in most cases. Occasionally there is a place where buyers and sellers can meet in the middle, but it is difficult to get people to pay more than what something is deemed to actually be worth.
Another reason that it is important not to over price a home is that you miss a large portion of your buyer pool. You will see that there are a handful of agents that have trouble with pricing. It is a red flag if you see an agent that constantly prices high to obtain a listing and has massive price drops in the weeks following to try to compensate and bring the pricing back to actual market value. These deceptive practices will devalue your home long term because the buyers will assume there is an issue with the home or that the seller is desperate. The benefit of pricing correctly from the start will guarantee more cash in pocket at the close of sale.
What can you do to price properly? Speak to a few agents about their opinion on pricing and make sure that they provide you with real and actual comps from the market and the reasoning behind their price. This “proof” will be what the bank will be looking for in the end to finance the property.
The Jennifer Lasco Real Estate team are experts in pricing. We sell at or above our list price in most cases, and 3% higher than most other brokerages in the market. Call us today to help you with your home!
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Jennifer Lasco Real Estate
101 N. Adelaide
Fenton, MI 48430