Pricing your home correctly is imperative for a successful result. While there are different strategies to pricing, the key to them all is having an accurate valuation. We provide all our sellers with an in home listing consultation where we can gather the key pieces of data to price your home accurately. From there, we use the Northwest Multiple Listing Service database, King County & Snohomish County Assessor records, and proprietary information from Realist to make sure we have all the data to provide you with a precise valuation.
Once we’ve completed our extensive research, we compile this data into a complete Comparative Market Analysis (CMA) for your review. A CMA values your home the same way an appraiser does – by using nearby Active, Pending, and Sold comparables. From there we make adjustments for the differences in the homes and take an average and median price. This provides you with a very accurate valuation, often within 3% of the price your home will sell for.
Once we know what market value for your home is, it’s time to talk strategy.
There are 3 valid strategies for pricing your home.
- Strategy #1: Price at market value: As Goldilocks might say, this is the “just right” strategy. The goal here is to sell your home within a reasonable time-frame (usually within 60 days) at the listing price or very close to the listing price.
- Strategy #2: Under-price your home: The strategy here is to under-price your home by 3% – 5% with the goal of soliciting multiple offers. This is a great strategy in a strong Sellers market and can often result in the home getting bid up above list price. The risk though is that sometimes you throw a party and no one shows up. If this happens its very difficult to increase the listing price of your home.
- Strategy #3: Over-price your home: This can be a great strategy in a slower market or if you have a unique property. The nice thing about over-pricing your home is that you leave yourself room to negotiate. The downside is that if you over-price by too much many people will never come to look at it in the first place. Also, you run the risk of building a long “Days on Market” clock which can result in low-ball offers.