It seems that there are 2 methods that some real estate agents use when helping to set a price for a newly listed home. The first type of agent you want to avoid is the one that prices your home too high only because they don’t want to hurt your feelings. They know that most of us as homeowners have put countless time, money, and effort into creating our perfect abode and we are undoubtedly shooting for the highest price possible. The realtor justifies this method in his or her head by saying that they can eventually come down on the asking price little by little in hopes of garnering interest. While their intentions to protect your feelings can be admirable the truth is that pricing a house too high is real estate suicide. Many people will immediately cross it off their list and no amount of “price reductions” will change that.
The second type of agent will push for an absurdly low price. This is done for one of two reasons. One,(and I hope that this is not true of many in my profession) is to get a quick sale and therefore a quick commission. I do believe that this is rare but I think it’s important to be aware that it does happen. A more likely scenario is that the agent is hoping to drum up a great deal of interest in your property in hopes of a bidding war. The obvious logic here is the more interest=more offers=more options. In theory this sounds great but it can also cause unnecessary (and often times useless) hype which doesn’t produce the desired result.
One of the many things that I believe myself and my team do very well is price a home with confidence and accuracy according to the current market. We analyze the neighborhood, school systems, future plans, and of course the comps. While price reductions, bidding, and alterations are unavoidable in some cases we work hard to ensure the sellers satisfaction. We find that honest and accurate pricing not only increases the chances of a successful sale but it instills in the general public a confidence in us as a team and a company which will in turn only improve and increase our target audience for our sellers.