The most important thing when selling a house is the price. It doesn’t matter if you have gold floors in your house, if you don’t price the gold accordingly, you won’t sell you house. I tell ever client that if you house doesn’t sell in two weeks, its over priced. The buying market determines the value of your house, not the comparable. If there are no buyers for your house that means its not in the right sweet spot to sell.
Real Estate agents use the comparables to determine the value of a house. While this is how it works in most cases, it may no be the only way to determine the price. Real Estate is like art, if somebody will come along and over pay for a house, then that is the worth of it. This is true for the opposite as well. This is why we always see low ball offers. The problem with this theory is that if you need a mortgage the bank will not agree with you. They use the comparable method.
On a side note, it doesn’t matter where you are, people selling their own houses always price their houses above comparables in the area. They do this because they get the highest comparable and use that, even if its in another continent.
So how to determine how to price your house?
Here are some strategies:
1. Use the last known sold comparable within 3km
2. Account for differences in your house and theirs, eg Washrooms, bedrooms, location
3. Talk to a Real Estate Agent, appraiser, (get an appraisal)
4. Look at your competition, don’t be the highest
5. Take a look at expired listings, pay attention to their price and what sold at the same time
6. If you want to overprice your house, give it two weeks, if it doesn’t sell reduce it!
Finally, it doesn’t matter how good your agent is, or how much money you throw at a house to sell it. If it isn’t priced right nobody will buy it. The days of uneducated buyers are a thing of the 80’s. These days everybody has the Realtor app on their phone, or they have ten Real Estate agent friends to call and find out about solds in the area!