Mastering the Art of Pricing with Your Marathon, Florida Realtor

Every seller in Marathon, Florida wants to get the best price available for their home. That’s why choosing a realtor in Marathon who knows how to do this is extremely important.

Pricing is an Art

Pricing a property is a bit of an art. There is no exact process for how agents do this. However, agents who have been in the market for a number of years have gone around the block a few times and tend to excel at pricing properties compared to a realtor who has just started out.

Different Approaches to Pricing

Every agent has their unique approach to pricing properties. Some use adjustments, while others do not.

The basic formula for how agents price property involves comparing a homes features and benefits to those of other homes currently on the market and homes that have recently sold.

Comparables

The homes currently on the market (actives) are your competition, while the ones that have sold provide insight into what buyers have been willing to pay. It’s crucial to consider both sides of this equation. Your agent should provide you with information on active comparables (homes currently for sale) and closed comparables (homes that have recently sold).

Occasionally, agents may also show properties that are under contract or that have expired listings. Expired listings often indicate properties that were overpriced, which is why they didn’t sell.

Typically, most agents will use at least three comparables for each category: three actives or under contract, and three homes that have sold. However, in the Florida Keys, where properties are often unique and not cookie-cutter homes, it can be challenging to find three of each. In such cases, an agent may use only two comparables.

Adjustments

Our team prefers to use adjustments in our analysis. We believe that by acknowledging the features and benefits of properties and making adjustments, whether upward or downward, we can gain a better understanding of the value of your home.

The objective of these adjustments is to bring the comparables closer in line with your property.

For Example

Square footage is a commonly used adjustment for us. Let’s say your property is 1,400 square feet, but your competition is 1,000 square feet priced at $200,000. In this case, we would apply an upward adjustment to the comparable property to account for its smaller size. In other words, if that property had 1,400 square feet like yours, it would be valued at around $240,000

Range

The reality is, nobody can predict the exact selling price of your home. However, by utilizing adjustments and drawing from local market experience, you can determine your home’s value.

Marathon, Florida Realtors should provide sellers with both a low and high range. The low range represents the worst-case scenario, while the high range is the best-case scenario. Our team usually recommends starting with the middle ground as your initial listing price.

No Adjustments

Some agents choose not to use adjustments. They might claim they aren’t appraisers and can’t precisely assign dollar values to the differences between properties. Instead, these agents often show you comparables but typically rely on median and average home values. This method isn’t incorrect, but our team prefers using adjustments as we believe it provides a more comprehensive perspective.

The Importance of Pricing

When selling your home, remember that price is king, location is queen, and condition is the jack. Regardless of how much marketing your agent does, if the home is overpriced, buyers will look elsewhere.

First Impressions Matter

If I had a dime for every time a seller said this to me, I’d be tempted to retire from real estate—well, maybe not a dime, but you get the point.

Sellers often express this sentiment:

“Let’s list high; we can always come down later.”

Sure, you can, but it might not be in your best interest. Serious buyers who are actively searching the market can spot an overpriced home from the start. They’ll just swipe past it, and the same goes for their agents. The agents won’t recommend an overpriced home to potential buyers.

Even after sharing this insight, some sellers still say, “If a buyer wants to make an offer, they can.” Yes, that’s true, but in reality, they’re unlikely to because they’ll assume you won’t come down in price by that much.

Price Reduction

If you’ve let your house sit on the market for a while because you initially priced it too high, you might find yourself in the position of needing a price reduction. While buyers will notice the change, it’s more challenging to grab their attention this way. Essentially, you end up chasing the market, desperately vying for attention.

When you do decide on a price reduction, make it count. Avoid making tiny reductions repeatedly. Instead, opt for one substantial price reduction and leave it at that. It’s advisable to follow your agent’s guidance on how much to drop the price to make it more effective.

The Best Approach

Your safest and most effective approach is to price your property within the range provided by your agent. Overpricing your home will likely lead to a lot of wasted time, and in the end, you might sell for less than if you had priced it right from the beginning.

The Doctor’s Orders

When you’re feeling under the weather, you visit a doctor for expert advice. The doctor provides a prescription, such as doing XYZ. You have the choice to follow that prescription or not, but most of the time, the doctor’s recommendation is what’s best for your health. After all, this is what they specialize in and do day in and day out.

Similarly, in real estate, when you want to sell your house, you consult a professional. You’re not obligated to follow their suggestions, but most likely, the best course of action for you is to heed their advice.

Maximizing Your Property Value with a Marathon, Florida Realtor

As we’ve discussed, pricing is incredibly important when it comes to selling your home. Ensure you understand how your agent arrived at their analysis. Have an open conversation with them about your concerns and collaborate. When you hire a realtor in Marathon, Florida, remember that you’re part of the same team. They work for you and have your best interests at heart.

Ready to Sell?

Also check out our Sellers Page for more important information on selecting a Marathon, Florida Realtor

Prumo & Carden

Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over 13 years of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.

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