How to Set a List Price for Your Home
Finding the right price for your Orange County real estate can be the most difficult part of the equation. Once this is set, it can be the best or worse decision a seller can make. You need guidance and advice to determine the best price to list your home. During this phase of the home selling process, I will help you set your list price based on:
- Pricing considerations
- Comparable sales
- Market conditions
- Offering incentives
- Estimated net proceeds
Pricing Considerations – Find a Balance Between Too High and Too Low
If you set the price too high, the home may never get shown, even though it may be much nicer than other homes in the neighborhood.
If you price too low, you may sell so fast that you don’t get all the net profits from it you deserve.
Price Against Comparable Sales in Your Neighborhood
Remember that buyers will be judging your house based on others in the area. Compete with them by setting your house up right to begin with.
As your Orange County agent, I can research the proper records to learn which homes are similar and what they are selling for. With this CMA, I can provide the list of comparable sales data to you, along with data about other houses in Irvine and your neighborhood that are presently on the market, is used for a “Comparative Market Analysis” (CMA). To help in estimating a possible sales price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices.
Offering Incentives to Hasten a Sale
Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be “cash poor.” You may offer to pay some or all of a buyer’s closing costs and discount points from the buyers lender. If you are motivated and have not had many showings you may consider adding a special extra commission to the buyers agent or broker.
Estimating Net Proceeds
Determining the net proceeds of your home is something I provide you as your listing agent. We will walk through all the commissions, taxes and insurance necessary to sell your home and give you a firm idea of the cash you will walk away with at closing. Some of these costs involved are:
- payoff figure on your present loan(s)
- broker’s commission
- prepayment penalty on your mortgage
- attorney’s fees
- unpaid property taxes
Buyer’s/Seller’s Costs: Additionally, I can tell you whether local customs or rules dictate whether the buyer or seller pays for the items listed below. Subtract the following costs, as applicable.
- title insurance premium
- transfer taxes
- survey fees
- inspections and repairs for termites, etc.
- recording fees
- Homeowner Association transfer fees and document preparation
- home protection plan
- natural hazard disclosure report