How a Listing Specialist Determines the List Price of Your Property When Selling a Home
It’s important to note that every real estate agent or listing specialist determines the list price of a property differently. This is a sneak peek inside how our listing specialist, Alexis Anderson, runs numbers for the properties she lists for sale.
When determining the price of a property for a potential client, our team goes through three steps in determining the ideal list price for your property. Given that the list price will ultimately come down to whether or not the property appraises, we run numbers as an appraiser does. This can sometimes be tricky, as there are many different appraisers and it takes dedicated time and research to keep up to date with how the average appraiser is determining the value of the home being listed for sale. For that reason, our team looks at appraisal reports and determines what appraisers are giving as far as adjustments, so that we can make the same.
Here are the 3 steps we take to determine the sales price:
- Run comparables on the home;
- Make adjustments on the subject property based on upgrades of the property;
- Give the potential seller a net seller sheet to go over potential offers and earnings on the property when selling.
Let’s go into a little more detail on what each of these steps entails:
Running Comparables on the Home
We would take a look at homes that have sold in your neighborhood or direct vicinity that have sold within the past six months. Both distance and time can vary depending on how many homes around you have sold at what length of time. We would take the average of these prices to get a base price that we’ll make adjustments to in the second step.
For a full comprehensive market analysis for your property and examples of comparatives of your home, simply fill out the form below with your address and we can provide that to you within x amount of days.
Make Adjustments on the Subject Property Based on Upgrades & Value
The typical upgrades we would take into account when making adjustments to the base price are an upgraded flooring such as hardwood floors, LVP or Laminate flooring, as well as tiled bathrooms, tiled showers, granite countertops, etc. A little goes a long way and these will be the best bang for your buck because it’s less that the buyer has to incur when they move into the home.
Give Client a Net Seller Sheet to Review Potential Offers & Earnings
Once we have made our adjustments, we would provide the seller with a “Net Seller Sheet” that entails different price scenarios, what offers terms could look like so that they can essentially prepare for the worst, it outlines proration of property taxes, real estate commissions and gives you a range of how much you could profit from the sale.