Price a Home Correctly in Today's Market

The next series of blog posts reflect a recent article in Realtor® Magazine, "Your Handbook for Success". It consists of 165 tips for succeeding as a Realtor®. The posts will be written from the point of view of a Las Vegas Realtor®.

The opening line: "Regardless of what the pundits say about the market today, you can achieve sales success. Make your sales goals, stay on top of the market trends, be straightforward with prospective buyers and sellers, and keep your own negative emotions in check."

Las Vegas real estate has been in the news frequently in recent months. It has been touted as a struggling market. Interestingly, buyers and investors had better keep their eyes on the future Las Vegas home buying market. It is showing the signs of significant growth through the selling summer season.

The key to selling a home right now is to price a home correctly. A good real estate agent will help sellers understand the market. Tips for agents:
  • Look at Pending Contracts - Considerable weight should be given to pending sales, even more so than those that have sold.
  • Don't Take the Heat for the Market - The market will determine the final selling price. Agents should not take responsibility for the market conditions.
  • Creating Value is Key - The home has to be priced so that it's considered by buyers to be within the top two or three values in that price range.
  • Time for an Adjustment - Industry standards suggest that if an offer hasn't been made after 8 to 10 showings a price adjustment is necessary.
  • Have Your Seller Sign a Price Reduction Form in Advance - A form should be signed and a date set ahead of time. If a reduction is needed before hand then do it.
  • Forget About "Price Reduction" Signs - Such riders tell potential buyers the home is failing to sell.
  • It's OK to Fire a Seller! - If a seller is unwilling to recognize the market trends you will continue to invest time and money into the marketing of the home with no opportunity for it to sell. Serious real estate pros will take a hard look at their success ratios. If a seller will affect that ratio from the start, let them know you won't represent them. Be professional and be serious about it.

Next article: "Signs the Las Vegas Housing Market will Pickup"