Importance of Pricing Your Home
Picking a price point that appeals to buyers is more complex than one may originally think. I know I have previously mentioned in a vlog that one of an agent's duties is to pair your wants and needs with that of a home. Well, that means in any market you essentially have to sell your home at least three times.
First, you need to sell it to the agents. Nowadays there are lots of ways to facilitate a buyer but the largest pool is still controlled by the real estate agents. Agents that have knowledge of the current market trends will guess before arriving if the home is worth the price tag and will only be assured of this after viewing the property.
Second, you need to sell it to the buyers. Once an agent brings a prospective buyer, your home now has to appeal to the one who may eventually live in it. Not just appeal by things you can't change such as location but also the condition and cleanliness.
Thirdly, you need to sell it to the bank. You had agents bring buyers and one (or more) have submitted an offer for your property. You counter-offer and eventually come to a mutually satisfying contract. Now the lender will bring an appraiser to judge the 'actual' value of the home.
The difference in actual vs perceived value may or may not vary. For example, there is a neighborhood off Lindbergh in St. Louis, whose homes are hot commodities. They are not actually valued at the amount that they are selling for because of supply and demand. Meaning, people are paying more out of pocket to get into them because the bank doesn't think they are worth the asking price.
So when you, the seller, pick the price of the home for the agent to market: make sure you pick one that is fair. A fair price means more offers and having too many offers is a much better problem to have then struggling to get just one.
Second, you need to sell it to the buyers. Once an agent brings a prospective buyer, your home now has to appeal to the one who may eventually live in it. Not just appeal by things you can't change such as location but also the condition and cleanliness.
Thirdly, you need to sell it to the bank. You had agents bring buyers and one (or more) have submitted an offer for your property. You counter-offer and eventually come to a mutually satisfying contract. Now the lender will bring an appraiser to judge the 'actual' value of the home.
The difference in actual vs perceived value may or may not vary. For example, there is a neighborhood off Lindbergh in St. Louis, whose homes are hot commodities. They are not actually valued at the amount that they are selling for because of supply and demand. Meaning, people are paying more out of pocket to get into them because the bank doesn't think they are worth the asking price.
So when you, the seller, pick the price of the home for the agent to market: make sure you pick one that is fair. A fair price means more offers and having too many offers is a much better problem to have then struggling to get just one.
Happy Hunting,
Kurstin Raposa, a Realtor specializing in assisting buyers and sellers throughout St. Louis, Missouri and the surrounding area including, but not limited to, Jefferson County, South County, St. Charles County, and St. Louis County with Exit Elite Realty. Nothing beats a real estate agent with thorough knowledge of a local market that loves to share it with anyone that'll ask. If you have any questions please call or text: Kurstin Raposa 314.596.8608
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