Setting a listing price for your home involves a lot more than just writing down what you think it’s worth. There’s a lot that goes into determining the best price – one that will help you sell fairly quickly while at the same time getting you the most money possible. The process is both art and science, but there are some fairly standard procedures, pricing formulae, and influencing factors that agents use and take into account. So let’s see how Salt Lake real estate agents determine the listing price for your home.
Overview of Listing-Price Determination
The main points to keep in when it comes to determining listing price are:
- A comparison of your home with similar nearby and recently sold homes
- The current competition in the local market
- The different prices from different agents
It’s important, then, to understand how Salt Lake agents typically arrive at a price for your home.
The primary pricing tool agents use is a comparative market analysis (CMA). The CMA results will outline the proposed listing price and allow you to understand the reason for that particular price, as well as providing the basis for a marketing plan.
Formerly fairly simple write-ups of property comparisons, CMAs are now lengthy and complex, having been generated through the use of specialized software. They typically “show average and median sale prices, price adjustments, local minimum and maximum sale prices, days on the market, individual closed sales, homes that were listed but did not sell, the best time to sell, the impact of overpricing, etc.”
Still, there are other things your agent will take into account in determining the price. And that’s why proper pricing depends on agent experience and resourcefulness as much as it does plugging figures into the CMA software. You can find out more about what goes into it by calling a Salt Lake agent at 801.997.0767.
The Four Factors That Influence Listing Price
There are a host of factors that can influence how you should price your home. But the ones with the most impact are the comps (the results of the CMA), location, condition, and updates.
In simplest terms, this is a comparison of the prices of recently sold houses that are very similar to yours and in close proximity to yours. It also includes your current competition – that is similar homes in the area currently for sale and their time on the market.
For the CMA to be an accurate tool for determining listing price it must take into account homes that are very like yours with respect to condition, age, features, number of rooms, square footage, and so on. These homes also have to be close, ideally within the same neighborhood. And they have to have sold recently, ideally within the past six months at most.
After running the comps your Salt Lake agent will have a fairly good idea of what the listing price should be. But there remain other things to factor in.
If your home is located close to important amenities, it will likely sell for more than very similar homes that aren’t as close to those amenities. Proximity to things like good schools, entertainment, and dining will make it more desirable to buyers, and your agent will use that in determining listing price.
Other location-related factors include whether your home is situated on a busy street or a quiet cul-de-sac, as well as crime rates for the area and the location’s economic outlook. Your Salt Lake agent will look at all these when coming up with a listing price.
THE HOME’S CONDITION
Because no two houses are exactly alike, your home’s condition will also play a role in pricing. If your home is in better condition than the comparable homes used in the CMA, you can set a higher list/sale price.
In fact, buyers have been known to pay up to $15,000 more for a home that is well maintained and in excellent condition. So with repairs and refurbishments, a good roof, and a top-notch HVAC system, you can typically list your home at a higher price. To find out how to prepare your home in this regard, contact your agent.
Similarly, your Salt Lake agent will also take into account any updates when determining listing price. Updates – whether repairs, upgrades, or a major remodel – will definitely impact your home’s value in a positive way.
Unfortunately, not all updates will allow you to list your home for much if any more. Some updates simply yield a better return on investment at sale time. So if you’re considering some updates or upgrades prior to listing, be sure to consult your Salt Lake agent first.
Why You Need a Good Agent to Determine Listing Price
Certainly, you can determine a listing price yourself, but should you? Remember, pricing right is often considered the best marketing tool – the one that can get you a quick sale at a good price. And determining the right listing price usually takes a lot of experience, skill, and intuition. If you want to get your listing price right with the assistance of a good Salt Lake agent, contact us today at 801.997.0767.