Home Valuation (Pricing) Is A Crucial Decision For Selling Process, Part 1

Home Valuation (Pricing) Is A Crucial Decision For Selling Process, Part 1

​​Most top real estate agents and industry professionals agree that pricing a home is crucial for the home selling process. Yet, numbers show many houses are overpriced, hence not selling promptly. Also, some of these houses are sold below their actual market value. So the question is, what goes wrong and how can we get the house pricing correct.

What are the realities behind home valuation?  The sellers and listing agents play significant roles in determining the pricing. The sellers are the ultimate decision-makers in the process. However, we'll focus on the outside influences their decision. Let's first look at the seller's desire and preference. The seller's emotional attachment to the house or what they think and desire to get for the home - rather than considering the house's actual market value. 

Some agents may have self-serving motivation. These agents want to be hired and get the listing, so presenting a higher price may get them the seller's attention and eventually the listing. There are occasions when the agents do not have the experience to consider many aspects of the market analysis to come up with the correct market value. To be fair, home pricing has many components, and it is complex, and there is a lot of misinformation floating online. So here, we will get into the details of home pricing to better understand the process.
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What is the impact of online promotion and home valuation? Online marketing tools are more sophisticated than ever. New listings are available online daily, and you can have the convenience of getting a notification once a new listing comes on the market. Online tools also facilitate awareness in the market, easy comparison of the properties on the market. Considering the importance of home pricing, some internet companies took on the challenge of developed software models to automate the home valuations process.

These changes in the home selling process require a change in our pricing strategy. Regardless of the market condition, a buyer's market or a seller's market, the right pricing strategy is vital to get the most money for your house. 

​Note.
Seller's market refers to a market condition where the buyers compete to get your house (houses on the market are limited). The b buyer's market is a reverse scenario, where you as a seller compete with other sellers to get the buyer (too many houses on the market).

​I can tell you from experience; some sellers don't get the full benefit of the seller's market because of incorrect pricing. It is simple, by overpricing your property, many buyers are discouraged from considering your property. Instead, it would be best to try to be in a price range that your house outshines the other homes, so you get the buyers to compete for your home. As a seller, you will be better positioned, have multiple buyers, and negotiate to find the real market value that these buyers are willing to pay.
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On the contrary, overprice property will get a lower offer, and you need to negotiate up to get to the house's real market value.

Questions? email: ​drdavidkg@gmail.com

PART 2 >>>

​Home Valuation (Pricing) Is A Crucial Decision For Selling Process, PART 2

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David Khosravi

Author

​About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: drdavidkg@gmail.com or by phone: 416.990.2424
Are you thinking of selling your home? I will be glad to share my marketing strategies with you.