Pricing a home correctly can sell your Florida flat fee MLS listing.
I just got off the phone with a client from Tallahassee. The conversation prompted me to write you this short email to address the question many sellers have: “Am I priced right for this market?”
I will talk briefly about 3 major points: the market, cash pricing, and an appraisal.
The market: We are now at 2002-2003 prices. If you bought in 2004-2006 period, carefully consider where you are priced.
Cash pricing: I have a simple way to set a price in this buyer's market of 2006-2008. Price your home as if a cash buyer were sitting across the table negotiating with you. Leave very little room for negotiations. Whatever your cash price is, add back your commission (buyer's agent), 2% for closing costs (documentary stamps on deed and title policy) and a few extra dollars. The reason I believe this is the best pricing strategy is because Realtors® know value and will show your home if they feel there is value in the listed price. If your new cash price (including buyer's agent commission and 2% for closing costs) is for example $350,000 and offers come in at $325,000 (as often they will in a buyer's market) then counter at $347,000 and stop. Give the buyers a chance to determine if they want your property. Keep in mind you can't negotiate with someone you can't get in the door.
Appraisals: While accurate for closed sales, they are not reflective of the market conditions. The typical cost of an appraisal is $350. Appraisals are more accurate than CMAs (Comparable Market Analysis) performed by Realtors® because an appraisal factors in “seller concessions” or buyers closing costs and CMA's do not.
What can you do to get more showings? Consider offering a higher buyer's agent commission such as 4% and go with Street Smart ADDvantage® Realtor® E-Blast marketing. In the above example (cash pricing), if a Realtor®, wants to close a deal and there's a $5,000 spread between your bottom line and their buyer's offer, there is always the possibility that the Realtor® will concede 1% of commission to make a deal happen.
Another consideration is ADDvantage PLUS™ program which comes with Street Smart ADDvantage® Realtor® E-Blast (if offering at least 4%), Agent Assure, a metal sign and an Exclusive Right of Sale Listing agreement. I truly believe ADDvantage PLUS™ helps close more deals because we take control of all calls, appointment setting, negotiations (right through closing regardless of how many buyers we go through) and the overall listing is more powerful.
If you have questions about this email, please call me.
Have a great weekend!
Broker for ADDvantage