The debate is as old as the real estate industry itself but, never more important.
Having nothing to do with the current market but, everything to do with selling your property in ANY market, a competitive listing price is a MUST. Does a low, highly competitive selling price for your Charlotte NC home for sale actually generate a faster, more profitable sale than a slightly inflated price with a willingness to negotiate? It has never been more important that sellers make informed decisions about their asking price and negotiating strategy. A seller with an unreasonable opinion of their home’s value is either a wishful thinker or does not have the benefit of an accurate market absorption or comparative market analysis and a real estate agent who specializes in the area. Let’s explore this debate a bit…
Get Real, Know the Facts
When sellers decide to list their home for sale in the Charlotte NC real estate market, they usually have an opinion of value, based on reported sales of similar properties. Consciously or subconsciously, most homeowners tend to follow the real estate activity of surrounding homes. However, every real estate transaction stands independently.
In today’s market, buyers and sellers negotiate to capitalize on tax incentives, green-initiative improvements, closing fees, homeowner credits and local incentives. Thus, the “neighborhood selling price” may not represent the price you can actually get for your home.
Real estate agents utilize different strategies to secure listings and suggest sales prices for their sellers. Therefore, a seller who requests proposals from three different Charlotte NC real estate agents may very well get three different opinions of value:
- One agent may want the listing at any price and be willing to accept an owner’s requirement for a high asking price just to land the listing.
- Another agent may be conservative and encourage a low asking price in the hopes of generating superior demand. This strategy was effective in the boom years.
- A third agent may combine his knowledge about the property, the neighborhood and today’s real estate market to come up with the optimal listing price.
The Optimal Listing Price
Responsible Charlotte NC real estate agents view the property from three positions.
1. First we inspect the property, top to bottom. We understand its history, the neighborhood, its strengths and its weaknesses.
2. Next, we do our research. We compile a complete, relevant list of recent sales, a thorough list of properties on the market and a comparable list of recently concluded Charlotte NC real estate transactions. We balance this information against the cost of new construction. We factor in what improvements might be necessary to stage the home more effectively.
3. Finally, we use this quantitative analysis, routinely called a comparative market analysis, to recommend a strong selling price designed to garner demand.
This is not an exercise in futility, folks! This is about establishing the maximum selling price your Charlotte home for sale should achieve. Keep in mind that your home could be worth $1,000,000 in your mind and your neighbors could be asking $1,000,000 for their home but, the market value is only as much as a buyer will pay. You cannot list your property based upon the neighbor’s current listing price, rather recent sold prices must be used to position your home on the market.
To further discuss how you can realize the greatest real estate value for your home, contact me today at (704) 491-3310 or by email CharlotteBroker@icloud.com.