The single most important job of a Realtor is to help you price your home right.
Primarly there are two types of homes:
A thermometer home that measures the temperature of the market and sets the price appropriately. This takes into account:
- Competitor pricing, inventory levels, and consumer sentiment.
- As these factors shift, the pricing could adjust in real time to maximize profit or ensure competitiveness.
A thermostat home that sets a new temperature in the market. Homes that typically warrant this type of pricing mechanism:
- Homes with capital improvements made i.e. Granite counters in kitchen & all baths.
- It's important that a Realtor help distinguish routine maintenance/repairs items from capital improvements that Buyers are willing to pay more for.
Avoid pricing a home with the expectation to take a price decrease.
A price decrease can signal to buyers that the home might not be as valuable or desirable as originally thought. This can lead to a decrease in buyer interest or make it harder to justify a higher price, even if the market improves later.