For any home buyer, creating a “wishlist” is a crucial step in the home-buying process: allowing them to clarify their priorities when searching for a new home. A prospective buyer’s wishlist may include any number of specifications or requirements — from desired amenities, to a specific number of bedrooms, or a preferred location, but the most important factor for buyers during the home search is (and always has been) pricing.
Why is pricing so important?
In a recent issue, Steven Thomas, renowned real estate economist and author of “Reports on Housing,” explained that the housing market is currently suffering from two problems: low inventory and high demand. Right now, there just aren’t enough homes on the market to satisfy buyer demand, which is keeping prices high.
In L.A., buyers are looking at a certain price range and these days, it isn’t even as much about location. Buyers are not just looking for a home in Sherman Oaks. Instead, they are looking at a wide swathe of areas because their most important consideration is to get the best value possible. It’s why pricing a home accurately is so important.
What is an accurate listing price?
The longer a home sits on the market, the less favorable the sale will appear to prospective buyers as they begin to question if there is a problem keeping it from being sold. Does it need renovating? Is there no natural light? Is there a weird layout?
One key to avoiding this situation altogether is to have an accurate listing price on your property. An overly high price may drive prospective buyers away, regardless of the property’s location or amenities. However, with an accurate price, it is often possible to get multiple offers on a property, and to achieve a final sale quicker.
And if you think you can hoodwink buyers into paying a higher value than they should for a home, think again. Buyers today are incredibly savvy. If a seller prices too high, a buyer (or their agents) will know.
How can an experienced agent help?
Pricing is not a science, it’s an art, and it’s not always easy to determine the best course of strategic action. When deciding on a listing price, it’s critical to collaborate with your real estate agent on the very best price that will garner the most attention. This price will be a function of market conditions and your agent’s experience in knowing the price that will attract the most attention and result in the most successful sale.
The bottom line is this: The housing market today is difficult to navigate, and having the help of an experienced agent who can help you price your home correctly and competitively is an ideal place to start.
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com