Sanibel real estate blog: Setting a sales price

What’s the most important thing about formulating a listing price for your home? Well, it is going to sound self-serving, but I would say the most important thing is to listen to your real estate agent (or agents). Let’s say you invite 3 realtors to your home to get their opinion on a price to market your home. These numbers should come in pretty close to each other, if you live in a neighborhood that has 2-3 comp sales for comparison. Your neighbors will have pricing ideas, your family will have pricing ideas, and you may have a few of your own- but statistics have shown that seasoned realtors really are the best experts on sales price. Another important factor when using an agent: they are able to separate their emotions from the home, while many sellers are not.

According to College of William & Mary real estate and finance professor Michael Seiler, the asking price for a home is a psychological move as well as a negotiating strategy.

“When you set a list price, you’re sending a signal to the market,” Seiler says.

Research suggests that an exact figure like $795,475 gives the impression that the price is less negotiable than a round number such as $800,000; and pricing at $999,900 rather than $1 million makes the lower number seem much cheaper.

Bottom line: be sensible! Hire an agent to do the marketing of your home. Feel free to call Kimberley or Chuck Andrews for a market analysis of your home, or check out our Sanibel real estate listings at www.chuckandrews.comĀ 




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