REAL ESTATE 2020 | Determining Your List Price by Penny O'Brien, Realtor

VALUABLE ADVICE WHEN IT COMES TO SETTING YOUR LIST PRICE

When determining your list price, several factors come into play - the comparables in your neighborhood, home improvements, your motivation and timeline. Your list price greatly affects the quickness of the sale. The quickness & market time affects your final % to list price.

Your knowledgeable real estate agent will provide you with the comps in your neighborhood. The number of updates your home has compared to the comps in your neighborhood greatly affects your list price. 76% of first time home buyers want a move in ready home, according to Bungalo. That includes new appliances, fresh paint and new carpet. An unimproved home, while potentially a great value, may linger on the market longer, garnering a lower sales price.

Sellers who want to try a higher price for a while because they “aren't in a hurry”, run the risk of longer market time and lower sale price in the end. You only have one opportunity for NEW status. Don't waste it! Your first 2 weekends on the market brings out the most educated buyers that have already seen the rest of the current inventory. If you’re overpriced, you run the risk of missing that buyer!

Another common seller pitfall is what the real estate world refers to as “anchoring”. This is when the seller has a set price in mind, which is often related to what they paid for the house. What you paid for the home, which is very important to you, unfortunately, has no bearing on your list price. The current market, condition of the home & the updates are what should be used to set the list price. An overpriced home that stays on the market gives the buyers the confidence to submit the dreaded low ball offer. A fresh new listing, priced correctly will receive much better offers, closer to list price- which could lead to a seller's dream- a multiple offer situation – possibly resulting in a sale price at or above list price.

ABOUT PENNY O'BRIEN

BAIRD & WARNER – One word that consistently comes to clients’ minds when they think of Penny O’Brien is “hustle.” As a Seller Representative Specialist, she loves meeting with sellers to discuss pre-market home improvements and guide them to make their home “showtime ready” when it hits the market. She strongly believes in professional staging and offers it as a complimentary service. With a reputation for “good-looking listings,” she helps clients realize a higher return and quicker sale. Penny says “Staging transforms a home from average to amazing”. Penny O'Brien Broker, Relocation Specialist and

Negotiation Expert • (630) 207-7001 • penny.obrien@bairdwarner.com