on this video we're talking about pricing what price should we list your home for so when we look at pricing your home what we look at are a lot of different things we look at comparable sales we look at the current market and then we try to figure out what we think the appraised value would be one thing we don't look at are the online estimators right like the Zestimate or Redfin has an estimator a lot of different websites give you an estimated value of your home the problem with those is that they're just pulling
data and trying to guess at what your home may be worth they've never seen the inside of your home and they haven't seen the inside of other homes that have sold near yours and so those are exactly what they sound like they're just an estimate when we price your home we want to use better data to come up with our list price so the first thing we're going to look at our comparable sales these are properties that have sold on the market they've already closed and we can see what they sold for now what we
want to look at is how many square feet they were how large they were compared to your house how many bedrooms and bathrooms do they have compared to your home and the most important number we're going to use on most homes is the price per square foot what is the price per square foot of homes that are similar to yours and that's going to get us as close as possible to our virtual listing price but there are a lot of things we want to take into consideration your home may have upgrades or the sales may
have upgrades and we have to try to figure out where your house falls in the market there to figure out where to price your home the other thing we're gonna look at is we're gonna look at active listings what's currently on the market right now and what's that price step if we look at the comparable sales and just for number sake let's say comparable sales say your house is worth two hundred and fifty thousand dollars but we see that every other house on the market is listed for $280,000 right all the other houses may be
priced too high that are actively on the market maybe that tells us we can maybe try to get a little bit more more than the comparable sales are saying the opposite is also true the comparable sales may show us that we have houses that sold for more but right now we have a lot of low price listings on the market we have to compete with what's on the market and so we want to take a look at those and and see where our house falls in line with those the other thing we want to look
at is what do we think the house is going to appraise for we can price it wherever we like but most houses sell for the value that an appraiser issues and so even if we price it high and we get a buyer that makes us an offer for that amount that's higher and the appraisal comes in lower most of the time the buyer is only going to be able to pay that appraised price now they may be old a couple up with more money but rarely does a buyer end up coming out of pocket to
pay more than the appraised value and so by pricing it higher above where it would appraise all we're doing is lowering the amount of people that are gonna look at our listing so when we price our home we want to take the emotion out of it listen I think my house is worth more than it actually is because it's my house and that's usually how it goes we usually think our house is worth more than it actually is because it means so much to us and so when we look at pricing our home we want
to take a step back from that and say what does the market think my home is worth because ultimately that's what we're gonna get for your home we're gonna get what the market is willing to pay now it's our job to help you make that amount higher and make it the most you can but we don't want to over price it because if we over price it we stay on the market for too long and if we stay on the market for too long people stop looking at our listing and then if people Southwick in
our listing obviously it's harder to get those good offers so when we talk about pricing we're looking for a sweet spot we're looking for the maximum price the highest price where we can get the most amount of exposure in the most amount of showings and sell on the best terms because if we price too high then we don't have any leverage when it comes to negotiating so people will pull us down a price they'll try to get more closing costs and we'll try to get better terms out of us right well if we find that
sweet spot we can usually get a great price with great terms in a short amount of time so that pricing sweet spot is what we're looking for when we look at price and where we list our houses so again if you have any questions on this if you have any questions about the comparable sales in your neighborhood one good thing to do is to go look at some of the active listings that are in your area go see what the competition looks like you're gonna see how clean they are whether or not they have upgrades
whether or not the bathrooms redone how big the backyard is right it's not a bad thing to scope out the competition if you feel like you're having trouble on figuring out a price to list your house at so if you have any questions give me a call but that was pricing your listing see you on the next video [Music]
