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How a Real Estate Agent Decides on the Listing Price for your Home

Posted by Craig Summers on September 12, 2013
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How a Real Estate Agent Decides on the Listing Price for your Home

When you are ready to sell your home, whether you use a real estate agent or not, you need to have a market analysis in order to price it correctly, according to real estate professional Craig Summers with Atlanta Northwest Realty’s Paulding & Polk Team. But trying to do one yourself with online information probably won’t be accurate so it is best to utilize the services of a professional.

The most important thing to remember about a market analysis is that you are only being given the information as it is available to the agent. When sellers put their house on the market they typically have a price in mind before they talk to a real estate agent. They may have an amount that they want to have in order for the sale to be worthwhile for them. And they may even have to clear a certain amount in order to get into their new home. Unfortunately, in a market analysis none of this matters.

When an agent compiles a market analysis they can only use the facts from the computer. The first step is to look at the comparable homes that have sold in the neighborhood with comparable being the operative word. If the homes that have sold do not closely resemble your home then adjustments have to be made. For instance, if a comparable home has an additional bedroom that yours doesn’t then you have to deduct the value of a bedroom.

An important point with sold homes is the sold price at closing- not the asking price. This may differ by tens of thousands of dollars. What someone is asking is irrelevant: what it sells for is what is important. Neighbors may quote prices, what they paid, what it appraised for, etc., but, again, that is not where the information will come from.

If there are foreclosures in the neighborhood within the last six months they will have to be considered as comparables. This will probably bring down the value, but this is the exact same information that the appraiser will use when they appraise it for the lender. There is no way around this.

Another common problem is how much current homes for sale are listed for. These homes have not sold yet so their information is irrelevant. Just because someone may be asking more for their home doesn’t mean it is worth that much.

For information on how much your home is worth, contact real estate agent Craig Summers at 404 374 1620.

For a FREE List of 3 Plus Bedroom Paulding County Homes under $150,000 with prices, addresses, and descriptions click the link, fill out the form below.