When setting a listing price for a home, accurate information and evaluation of that information is critical. The nuances of the neighborhood, knowledge of the comparable properties, current issues facing homeowners and buyers all come into play when setting a market value of a property. Realtors carry on a thorough discussion with their sellers, explaining all of the factors that affect their home’s value. The discussion can take the tact of why the property is worth more than the sellers thought, but more often than not, the Realtor is explaining why it isn’t valued at the same amount that the sellers thought. Of course, there is an emotional tie for the sellers…fond memories and endearing features of the property that add value for the present homeowners, but are simply a perk for a buyer. So, after long deliberation, the Realtor and property owners come to agreement on an acceptable listing price.
However, does the Realtor have the same discussion on the seller’s expectations after the property goes on the market? For the Realtor, an ideal situation would be the property selling in a reasonable amount of time at very close to asking price. From a seller’s perspective, receiving an offer too quickly and at asking price translates into not asking enough for the property. When the property is listed, it is critical to include this conversation. If we do our evaluation correctly, and market the home properly, the property should sell quickly and close to, if not at, asking price. The sellers should not be surprised by an early offer – rather they should congratulate themselves for hiring a Realtor that was professional, knowledgeable and thorough enough to do exactly what the sellers required of them.