Blogging from Brookside in Kansas City: The Market Determines the Price of Your Home

The Market Determines the Price of Your Home

When going on a listing appointment, I know the #1 question the sellers want to ask me:

“What price do you think we can get for this house?”

 

It sounds like a simple question—but there are so many factors that can affect pricing, it’s not an easy one to answer.

 

This charming home sold for over list price!

 

Ultimately I tell sellers:  the house is worth what the buyer wants to pay for it.  The market determines value.  As sellers, you can influence and control value to a certain extent—but if the housing market crashes next week, your house will probably be worth less.  The house pictured to the left sold for over asking price!

 

There are several steps to determining a price range.  I make sure sellers are familiar with:

*recent sold properties.  What are the updates in those properties, how does the location compare, is the house larger or smaller?  How’s the curb appeal?  Are the mechnical items newer?

 

*pending sales nearby.  When these homes close, they will be comps for your listing.

 

*on market homes.  I stress that buyers are not just looking at your home—they are looking at 5, 10, 20 other homes and comparing all of them.  How does your home stack up to the competition?

 

*price per square foot.  A breakdown of comparable solds with price per sf is important information to have ready when pricing.

 

*what improvements do the sellers plan to do?  Whatever homeowners do to get the house ready for the market can also affect value:  decluttering, painting, replacing carpet, landscaping, etc.  It all  can affect the price and value.

 

While going over all these details, I always stress the data and facts that determine pricing.  And I also say  I want the sellers to set the price—it’s their house! I usually specify a price range, based on the data. I also talk about how buyer agents will pull up comps when making an offer and discuss these same details I just showed them when writing the offer. 

 

Whatever price the seller chooses, there is also a discussion about a price reduction if the house isn’t under contract in a specific time period.

 

A seller has influence on how the home is presented to the buyers and the price--sellers cannot dictact market conditions.  Control what you can as a seller to present your home in the best condition at market value!

 

Mary Hutchison, SRES, ABR

(Brookside/Armour Hills resident, local business supporter, NPR fan, Habitat ReStore volunteer, thankful for the gift of another day!)

**********

Better Homes and Gardens Real Estate/Kansas City Homes

mary.hutchison@kansascityhomes.com

816 510 1262

www.maryhutchison.org

 

Comment balloon 5 commentsMary Hutchison, SRES, ABR • September 06 2018 03:23PM

Comments

Mary, what a great summary of the important points Sellers should consider when choosing a price tag for their home. I will re-blog it. Thanks.

Posted by Steffy Hristova, Tempe AZ Realtor - Your Home Close to Your Work! (HomeSmart Elite Group Tempe AZ Tel: 480-966-9353) 3 months ago

Mary Hutchison, SRES, ABR - You have pointed out everything a seller needs to know to make them realize how important it is for them to contact you to get the details they need through your personal market analysis for them and their property. 

I hope AR recognizes the work you put into this one and you get featured. It could sure benefit many. 

Posted by Patricia Feager, MBA, CRS, GRI, Selling Homes Changing Lives (DFW FINE PROPERTIES) 3 months ago

You can only get what the market will bear, and a lot of factors go into determining what that price will be. As you said, the value can change overnight. Great post.

Posted by Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell (Front Gate Real Estate) 3 months ago

Mary Hutchison, SRES, ABR - Thanks to Steffy Hristova re-blog, I didn't miss this great post you wrote. You're spot on! I'm seeing a shift in my market and your information is exactly what sellers need to know. 

Wishing you the best with listings and buyers. I sure hope ActiveRain features this one. 

Posted by Patricia Feager, MBA, CRS, GRI, Selling Homes Changing Lives (DFW FINE PROPERTIES) 3 months ago

I have had more than one home staging client that insisted they didn't need to follow advice because they believed their home would basically sell itself. 

Didn't work out too well for them. It never does.

 

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) 2 months ago

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