Pricing a property is a subjective art. Yet it is one of the most important services we provide clients placing their valuable asset on the open real estate market. Set the price too high and the property will languish on the market for months. Recently an agent confided she felt she ‘had egg on her face’ as her listing finally sold $300,000 below the original list price.
On the other hand, if we set the price too low the seller is likely to be inundated with multiple offers, and all offers must be presented. This increases not only stress for the seller and heightens the workload for the agent, but also creates frustration for other hopeful buyers and their agents. One particular property recently received twenty, yes that is 20, offers, yet only one buyer was fortunate enough to open escrow.
In my opinion, the best way to avoid frequent pricing fiascoes is to sell what you know and know what you are selling. When selecting an agent to sell your home, or help you purchase a home, look for market knowledge and hyper-local expertise. One of the most valuable pricing tools in my Realtor’s toolkit is my firsthand knowledge of the real estate market. This requires not only review of local sales statistics each month neighborhood-by-neighborhood, but actual ‘boots on the ground’—yes, my business partner and I preview an average of twenty homes per week from Palos Verdes to Manhattan Beach.
It is important to know the nuances of the neighborhoods, the perks of the location and the value of a view or other amenities. Some streets command a higher value than others in the same neighborhood. The size of the view matters in a high demand coastal community. A comparative market analysis is important but it is even better to actually see the properties, the location, the view and the condition with your eyes.