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Establishing The Price

So you’re thinking about selling your home in order to move to a different sized home, or a new or different community. Maybe health or family circumstances suggest a community that offers assisted living as an option. Whatever the reason for selling, the uppermost question in the homeowner’s mind is usually: How much can we get if we sell?

This is a question the Boeglin Team fields on a daily basis. Pricing homes for sale involves aspects of art and of science. Unlike shares of IBM, every home is unique. The best “comps” may be similar, including the same floor plan, square footage, and age. However, no two homes will have the same décor, location, view, condition of the roof, appliances, floors, kitchen counters and cabinets, landscaping, curb appeal, attention to updating and maintenance history, etc. There are always variables.

When we are invited into a home for a listing presentation, we do our “scientific” research in advance with respect to recent sales, homes on the market in the community, buyer attitudes, and market trends. Armed with “the facts”, we then view the home, inside and out, with the variables in mind. This is where we shift to a “feel” of where this particular home fits into the mix from a pricing perspective.

What is the “right price” that a willing buyer and a willing seller are likely to agree upon. With 12 years of experience in the local market area, our sense of value is usually proven correct. Of course, motivation of the seller can be an extenuating circumstance. If the homeowner is eager to sell quickly, the price may need to be at a bargain level; if the homeowner doesn’t much care if or when it sells, the home can be priced on the high end of the value range.

Recent market conditions can also be a factor in pricing. When the housing market is plummeting, as it was 6 or 7 years ago, we recommended a list price below recent sales in the hope that the home would sell before the market dropped even further. When the housing market is on the rise, as it has been in recent years, it may make sense to push the price higher in anticipation that the market with “catch up” to the higher price. We think of this as “market forward” strategy. What might this home be worth 3 months from now?

Of course, it is always the prerogative of the homeowner to establish the list price. Not all homeowners agree with our opinion, and we (or another Realtor) end up listing the home at a price outside of our suggested range. Sometimes it works out; sometimes the home lingers on the market for an extended period of time.

The Boeglin Team is ready, willing, and able to serve you when you are ready to place your home on the market. Give us a call.