3 Mistakes to Avoid When Pricing Real Estate
The Content Below has been transcripted from the video found here:
A lot of people are into timing the market or using market trends to determine where they think their list price should be when going to sell their home, that is a bad idea. Market trends are definitely not going to help you sell your home faster, and especially not in 2020 to.
Chances are, if you are looking and considering selling your home in the next year, you've probably already started to do some research to see where a good point for you to list your home might actually be. And usually, when people are doing this, they tend to look at a few certain details in the market to help them determine their listing price. The first and most obvious factor that you might be taking a look at our recent sales within your building. Recent sales in your own building can be a very telling sign of where you should probably be around when it comes to listing your apartment, especially if you're living in Manhattan or a high rise building where a lot of the units are probably within the same line of where you're actually listing your home. However, this could also be misleading if you don't consider the factors that might alter a listing pricing when it comes to looking at the same units within the same building, one of which might be the floor it's on a higher floor might yield a better view. The potential updates to a unit or lack of updates. Maybe there are some big renovations that the previous owner had done to actually yield a higher sales price for their home.
Even a small minor detail, such as the direction an apartment faces, can make a huge difference in where you're listing price should be for your home. Another thing you may have looked at is maybe some market trends or some reports on a particular neighborhood.
These are great because they really do give you an idea and a sense of what might be going on and maybe even some things in the neighborhood that actually may ultimately impact your sale. The challenge with looking at a market report that's usually generated by some third party is that it really doesn't give you an accurate representation of what's going on right now. Chances are, if you're looking at a market report, this is the way it works. We, as agents are doing the transactions, then the transactions are recorded with our companies. Then they are reported in general.
Then someone has to pull that information to analyze the data. So you kind of stories being told from the data and then someone else repost that so that you can have a general snapshot of what might have happened.
And the biggest problem with that is that usually that's happening 30 days later. If you're getting a market report from someone who is releasing ports on the regular basis, they're usually coming to you with information from the previous month.
And that's not really going to help you if you're looking to sell now or if you're looking to sell in the future. And I am consistently plugging myself to share with you market reports and potentially home valuations because of that reason of the data being publicized to you, the consumer, so much later in the process.
So if you did want to receive a market report or home valuation, I would encourage you to tax me at 6466534764 with the Letters Market Report. And this way I can reach out to you. Find out some more information about what is important to you and deliver you a market report.
That's going to be a snapshot of what we're looking at now in the market versus what we were looking at 30 days ago. Not only that, but a market report is usually pretty generalized for a certain area, so it's not really giving you an idea about apartments or homes that might be the same size as yours or may have the same or similar features as yours as well. Which brings me nicely into my last point, which is timing the market. People will try to figure out when is the best time to put my home on the market and might tend to work around trends during the year that they might see generally.
For example, in my last couple of videos, I've mentioned that a lot of people like to come to the market in the springtime and be there when, quote-unquote, a lot of people are looking to buy. If you're considering the timing and waiting for a particular time to actually list your home, chances are you're just ultimately going to miss the market. By the time you get the information that tells you that now might be a good time to actually list your home and then prepare all the steps to actually do so. You've probably already missed the wave of buyers who are intensely searching to purchase their home right now, and that's why you definitely want to make sure that you have everything in a row. And if you are considering making a purchase, I do talk about a few things that can help you determine if now is the best time to actually list your apartment based on your internal factors, rather than the external market.
So I think I've made it pretty clear about what people usually use to help them determine to price and why I ultimately do not use those things to determine to price. But the truth is, if you do use these factors to come up with a price for your home, you might get lucky.
You might be one of the people who end up choosing a listing price and then you get a ton of people, maybe a few offers. And that's especially so depending on which location you're actually selling. On the other hand, you might be one of those unlucky people who ends up pricing your home.
Too high and sitting on the market for 120 plus days, because you're just price too high and on the opposite end, you might be pricing yourself so low that you are setting yourself up for potentially being taken advantage of by a savvy buyer or an investor, or just not setting yourself up for success in the beginning.
And that is why I recommend working with a real estate agent like myself when it comes to choosing pricing strategies because we're ultimately going to use the information you provide to work with you and help you choose the pricing strategy that's best going to fit your goals if you like.
These tips are like more like this in the future. I encourage you to subscribe or even reach out to me directly with the number I gave you earlier in the video. And thank you so much for watching Easy NYC Real Estate where I make New York City real estate easy for you.
Thank you so much, and I'll see you soon.
