One of the most important things you can so when listing your home is to price it correctly out of the gate. There is such an impulse to list your home to “test the market”. Those days are gone. People are still buying homes but they are being smart and not overpaying like they have over the last few years. The market has steadily rose in value over the last few years but buyers are staying smart. They are not writing as many over asking offers and not allowing sellers to get away with what they could just a year ago.

The hottest time for any listing is the first two weeks. It’s fresh, excited buyers have never seen your home. If you are way overpriced you will scare buyers off and they won’t come back until the price is over corrected. This is how you end up chasing the market down and you end up selling for less than if you would have priced it properly in the first place. 

Be Sure To Listen to Your Listing Agent Regarding Price

Keep in mind your listing agent helps people buy and sell homes all day long. This is their job, their industry and they know it better than you. If I hear a seller say “I know what my home is worth” and throw out a ridiculous number I know they do not understand how the market works. The market determines the value of your home. Zillow doesn’t determine value through Zestimates, the lenders don’t, the agents don’t, the market doesn’t care how much you want, need or owe on your home. The market will only pay you market value. If you will not take market value they will just move to the next home. Not even the real estate agent can sell a home that is overpriced.   

Even if you convince your listing agent to list your home for more than market value. Then let’s say you find a buyer that just must have your home. They make a full price offer. Then what? Well there is a checks and balance in place for the lenders. The home still must appraise. This becomes a huge issue. If the home doesn’t appraise that means the buyer no longer can obtain the loan they originally wanted. It also tells the buyer that they are going into their new home with negative equity. Who wants to do that?  

Your Listing Agent Is Just Looking Out for You…

There are some people out there that have had a bad experience with listing agents in the past. Just like any industry the real estate industry has incompetent, lazy and immoral people in it. As a whole most agents (especially at Orson Hill Realty) are looking out for you. It is understandable that you are upset or taken back by getting a dose of reality that your biggest investment is not the same value you thought it was when you decided to sell. You heard your neighbor or cousin talking about how much they think your home is worth. Chances are if they didn’t do a detailed CMA and adjust the comps they are most likely wrong. 

Your listing agent isn’t trying to scam you or sell your home faster. They are just telling you something you don’t like. Something you didn’t want to hear. Unfortunately the listing agent doesn’t set the price. They just look at homes that have already sold, what the market has agreed to pay for homes similar to yours and tell you what the numbers say. Numbers don’t lie. Numbers don’t care what you owe on your home. Numbers don’t care that you have 3 kids in college and need to pay for their books. The market only cares about similar homes in your market that have sold in the last 6 months. That is what you look at. Not what your aunt that was a real estate agent 20 years ago in another state. The market does’t care about anything other than comparable home sales. 

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