Home Economics: Figuring Out When the Price Is Right Takes Homework

Runaway residential appreciation at the top of the housing market made it difficult for real estate agents to know how to price their listings. High demand for homes led to bidding wars, which pumped prices up above what sellers were asking. Today, however, real estate insiders say dwellings will not turn over unless they are priced appropriately; and Realtors and sellers must be able to justify the price they ultimately ask. “Sellers may be tempted to price a house with what they ‘need,’ but it is important to price at a realistic range,” according to Joanne Davidow, vice president of Philadelphia’s Prudential Fox & Roach. Practitioners say one way to nail down the right price for a listing is to study like properties that have sold recently in the same neighborhood or town and see what they fetched in terms of price — although John Duffy of Duffy Real Estate, also in Philadelphia, says it is critical “for the Realtor and homeowner to be totally honest with the comparison, and make sure you are comparing apples with apples.” Another tactic includes looking at time on the market; similar homes that have been listed for a long time most likely are overpriced. Additionally, Realtors say, the condition of a house — physical and emotional — is a key factor in setting asking price. “The home doesn’t need to have a new kitchen and bath and the latest look,” says Philadelphia Realtor Mark Wade, “but it does have to show clean, fresh, and decluttered.” | Read More