I will provide you with a detailed information concerning comparables used, particularly the top two or three in each category.
- Current Trends
Together we will discuss major market trends occurring within your immediate neighborhood and surrounding community.
- Past Trends
I will prepare historical information concerning the average length of time properties are on the market until sold, turnover of property in your area, listing to sale price ratios and other relevant indicators.
Together we will objectively evaluate the strengths and weaknesses of your home in relation to comparables in the guide using factors such as location, upgrades, buyer appeal, special neighborhood amenities, site features and functional room layout.
- Avoid Overpricing
We will discuss problems of overpricing a property:
- Difficulty in getting other salespersons and brokers enthused about the property.
- The possibility of the property remaining unsold and becoming market stale.
- The risk of appearing in the wrong price category and thereby restricting the number of qualified buyers who might otherwise seriously consider the property (e.g., buyers in the $300,000 – $400,000 not looking above the $400,000 price level).
- The risk of becoming a “comparison house” that may be actively shown, but only to sell other well-priced property. Qualified buyers who might otherwise have purchased the property do not seriously consider the home, as it is beyond their price range. Property may become stale as motivated buyers pass on the property. Showings which do occur are usually for comparative shopping (i.e., to demonstrate attractive pricing of other listings).
Staleness can lead to buyers thinking that something is possibly wrong with the property (over and above the unrealistic listing price). As a result, the seller may have to reduce the price below fair market value to revive interest in the property. When the price is reduced, bargain hunters are attracted hoping the seller is under pressure to sell. The property may sit on the market for a long time and not attract any offers. If the seller has committed himself/herself to another property, he/she may feel pressured into accepting the first offer that appears even if it is below market value. If the home remains unsold, the seller may blame the salesperson for not working hard enough even though the real reason involves overpricing.