List vs. Sales Price? Days on Market? Why Should You Care?

In our Local Real Estate Market you can't really under price your home for sale. Why? Because if your home is under priced, buyers will perceive it as a value and bid up the sales price to its value or even higher. You can make the costly mistake of over pricing your home. Over pricing your home can have the opposite effect. Buyers these days are savvy - they know the neighborhoods, the price per square foot, what the recent sales are - it's all available now on the Internet. Over pricing your home reduces showings and offers as well as increasing the number of days your home is on the market. Over pricing your home results in a lower final sales price.

When interviewing prospective Real Estate Agents to sell your home you should ask for the Agent's sales history. They should be able to provide you with their recent sales for the last two years comparing the Original List Price to Sales Price, Days on Market and Reductions in Sales Price (in writing). It's really just simple math. Comparing List to Sales Price will give you a percentage. The amount can be greater than 100% when the homes sells for more than original asking price or less then 100% when selling for less. I might also be a CPA, but this is just simple math. The simple comparison of these numbers should give you an idea about the Real Estate Agent's ability to price homes, whether they have had price reductions and how long it takes them to sell their listings. Some agents simply tell sellers their homes are worth more just to get the listing. This can be a costly mistake for the seller.

What other things should you look for when selecting a Real Estate Agent to Sell your home?

1. They should have a Internet Presence in the city your home is in. Their website should easily be found on Google, Yahoo, Bing etc. for simple key words like "Sherman Oaks Homes for Sale". 95% of Buyers are now looking for their new home on the Internet.

2. They should hire Professional Photographers. It's amazing how many agents take their own photos - some look like they are taken from a cell phone. Great professional photos will get buyers into your home.

3. They should have a Written Marketing Plan to sell your home. Fail to plan, you plan to fail.

Todd Riley - Keller Williams Realty - Lic 01165252 http://www.ToddRiley2.com/