Pricing A Property – Art or Science?
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The simple answer is that it is both an art and a science. The complexity lies in finding the right balance between the two that will ultimately sell your home.
So the science elements – they encompass taking a hard look at the recent and current numbers. As realtors, we have access to what the industry refers to as comparables. Comparables are those properties in your neighborhood that have similar characteristics as yours. For example, looking at the number of stories, bedrooms and bathrooms, recent updates or renovations, lot dimensions, etc. Then we see what these properties were listed for, sold for and how many days they were on the market.
With these numbers in mind, the art comes to the forefront as we need to finesse a realistic view of the property. We understand and respect the fact that homeowners have a personal stake in their property. A home is a place where memories are made, families grow and milestones are passed. There is no monetary value that can ever be associated with these elements of home ownership.
So how then does one come up with a final list price? Getting the price right at the beginning can be crucial to getting a quick sale. No one wants their property to sit on the market for too long, and perhaps become stale or have to decrease the asking price.
Our approach is to bring homeowners a package of comparables. We have a conversation about their expectations and requirements. This conversation can bring to light other factors that can play into the price. Some examples can be the need for a quick sale due to a job transfer, deadlines for closing on a new property, and many more. Armed with all this information, and after a healthy discussion, as a ‘team’ we decide on the list price.
Even with a realtor’s experience in pricing homes, it all comes down to finding the right buyer for your home. There is a buyer for everyone but pricing it right can find them that much faster.