Wednesday, January 12, 2011

How do I know you priced my home correctly? Seller Tip.

Often, with pen held in hand and ready to sign the listing agreement, a seller will look me in the eye and say, "How can I be sure you priced my home right?" It is an important question, especially as equity evaporated faster than water in the desert during the Great Recession these past few years. It is understandably hard for a seller to release the memory of being a paper millionaire in the heady days of double digit increases in the local housing market.

I love a good review of facts before placing a property on the open market, and it is imperative to share all information with the prospective sellers before they list a property. Knowledge is power. Equip a seller with the tools used to determine the listing price for his/her property and forever banish their suspicion you plucked the price out of thin air.

1) Gather the Facts--the tax assessor's records are a good place to begin assembling accurate information. The size of lot and house, the year built, zoning etc.

2) Comparative Market Analysis-- Since an appraiser will use the comparative property approach to establish value after an offer is accepted, a savvy agent will use the same method before the property is sold.

3) Check Current Competition--Buyers will often apply the rule of substitution if they suspect a property is overpriced and a similar home in a similar location is a better deal. It pays to know your competition.

4) Review Pending and Recent Sales--An active agent will have first hand knowledge of properties currently in escrow and recent sales in the subject property's neighborhood. Pay close attention to these properties--they are the ones an appraiser will use to establish value of your property.

5) Work with the Local Expert--Intangibles affect value. Great schools? The price goes up. Sought-after street or highly desirable view? Ditto.

Norma Toering - REMAX Palos VerdesNorma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Information is deemed reliable but not guaranteed.

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