One of the most critical factors to consider when selling a property is whether it has been appropriately priced. Realtors and their clients must make sure that the best possible price is assigned to the property, but this is often not easy to do. Overpricing a property can damage its appeal, even if you decide to drop the property’s price later. Underpricing a property will result in multiple offers and dashed expectations. While there is no universal way to price a property, there are some critical factors that you should consider when deciding what price should be assigned.
Compare Listings and Sales
You should review the listings of other properties in the neighborhood that have sold over the last few months. Most times, you should limit this search to properties in the surrounding quarter-mile to half-mile radius. While doing this, be aware that property located on different dividing lines like major streets and railroad tracks can have substantially different values.
Consider Pride Reductions
After comparing the sale prices of various properties in the area, you should consider their original listing as compared to final prices. This gives a better idea of how parties in the area who have bought and sold similar properties in the area have navigated the negotiation process.
Consider Expired and Withdrawn Listings
It is not enough to gather data for recently sold homes in the area, you should also collect any expired and withdrawn listings to determine whether any of these properties were taken off the market and relisted. See if you can determine any reasons why these properties did not sell and note any commonalities that these properties have with your own.
If there are big similarities, you should determine if there are any steps that you can take to prevent your property from becoming an expired listing.
Consider Pending Sales
The ultimate sales price of property remains unknown until the transaction has concluded. Some people, however, rely on connections to speak with the associated realtor and ask the price for which the property is being sold. Sales prices can change suddenly, which is why it is a good idea to remain up-to-date with the most recent property prices.
While on the subject of recent listings, it is also a good idea to remain up to date with any actively listed property in the area. These properties should be viewed as your competition. Now is the time to consider whether your property is being presented in a manner that is as attractive as its rivals.
Speak With an Experienced Property Law Attorney
Pricing a home correctly is just one of the many challenging issues that can arise during property transactions. If you need the assistance of an attorney during this difficult time, do not hesitate to speak with a skilled property law attorney. Contact Adam Law Group today to schedule a free case evaluation.