How do real estate agents determine prices?: 5 strategic considerations
While a quality, professional real estate agent will assist their client in determining the most appropriate listing price, it must be remembered and understood that the final decision is the homeowner’s to sell their home. Since, for most, the financial value of their home is one of their greatest personal assets, an essential agent skill is creating a level of trust and a personal connection between the owner and their representative. ! Doing this makes it possible, to the greatest extent possible, to build trust and a bond, where thorough and exhaustive discussion, etc., becomes possible. With that in mind, this article will briefly attempt to consider, examine, review and discuss 5 key strategic considerations when it comes to determining the most appropriate initial listing price etc.
1. Competitive Market Analysis (CMA): The best and only logical, practical, realistic and well thought out way to determine an MSRP is to prepare a comprehensive Competitive Market Analysis (CMA). This should consider houses, with similar characteristics, in the same general area/region, and measure/evaluate factors, such as: Time on the Market; the relationship between the initial listing price and the selling price; significant advantages and disadvantages; positive and negative, related to the specific area, local, etc. Practitioners should suggest a range, based on this process, and help suggest pros and cons to the owner, while answering questions and addressing specific concerns.
two. Marketing strategy / plan: There are a variety of possible strategies, and the best marketing plan should be based on significant teamwork between agent and owner. Early on, a thorough discussion of the possibilities and which, marketing plan, makes the most sense is a valuable step!
3. Target vendors/priorities: Real estate professionals realize, must carefully, effectively listen and learn, their seller/client’s personal objectives, and personal priorities/goals, etc.! Pricing should be based on the seller’s tolerance, patience, and personal comfort zone, and should be adjusted to the realities of current market conditions.
Four. Local market / type and conditions: Know, understand and determine the existing local real estate market, including nuances, in terms of conditions and types, including factors, based on supply and demand, etc.
5. Time considerations: If the seller has the patience, ability and mindset to wait, rather than if there are pressing personal/financial factors and considerations, they often determine the pricing strategy. While someone who is ready, willing and able to wait patiently may price the house at the higher end of the range, others who, timing matters, must price it right from the start!
When you’re ready to sell your home, carefully interview potential real estate professionals before hiring an individual. Take a hard look at a lot of relevant factors and make sure you’re on the same page from the start.