The Importance of Pricing a Home Accurately

The single most important factor in selling a home is pricing it correctly. As a real estate agent, I have received extensive education, and continue to undergo training often, at least weekly, every week, on the every-changing value of homes. I also have access to the MLS (Multiple Listing System). To access this system you must be a licensed real estate agent, which requires education and payment, both ongoing. This system allows me to see every house, on and off the market, when it last sold, how much it sold for, whether a listing was withdrawn or cancelled, the square footage and many other details. The historical record goes back decades. Without the proper training and access to the MLS, it is very difficult to price a home correctly. I have a painstaking process of comparing every similar home that has been listed or sold in the past 6-12 months. I look at the photos, read the descriptions, compare finished sq ft, lot size, year built, upgrades, and more. I look at the exact locations of each comparable on a map and research if that area is more or less valuable than the subject property. I go through statistics looking at the type of home, and it’s location and examine the numbers for “Days on the Market”, “List Price vs Sold Price”, “Numbers of Home’s Listed”. Then I look at the HPI (Home Price Index) and compare the subject property to the HPI. Through this lengthy process I come up with a small range. Then I always inform the client of my findings and they make the final choice.

Coming up with the right price means the price should be the same as the other similar homes, in similar neighbourhoods. If it is priced higher, then it actually helps the other homes sell as it becomes the competition. The longer a house sits without selling, the more people assume something is wrong with it and write it off. It can then take a drastic price drop to sell.

I’ve heard many people say, “I just put up a For Sale sign and it sold the next week, I didn’t need a realtor”. This is absolutely true! In Victoria, where lots of people want to live, you can sell your home yourself! It’s unlikely to save you any money, not using a realtor, but if you are DIY type person and enjoy new processes, then by all means, do it on your own with just the assistance of a lawyer. I am also a DIY enthusiast and love doing things on my own. However, if you are wanting to get the highest price for your home, using a realtor is the way to go.

Pricing a home correctly is one of many reasons to use a real estate agent, and one of the most important. If you want to find out the value of your home in todays market, contact me for a free, non-obligation market analysis of your home.