Establishing a List Price for Your Home

Setting the list price for your home involves evaluating various market conditions and financial factors. During this phase of the home selling process, Eslinger Realty 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

When setting a list price for your home, you should be aware of a buyer’s frame of mind. Consider the following pricing factors:

If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your REALTOR® to “Bring me any offer. Frankly, I’d take less.” But compared to other houses for sale, your home simply looks too expensive to be considered.

If you price too low, you’ll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.

TIP: Never say “asking” price, which implies you don’t expect to get it.

Price Against Comparable Sales in Your Neighborhood

No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market.

Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood. Your REALTOR® can furnish data on sales figures for those comparable sales and analyze them to help you come up with a suggested listing price. The decision about how much to ask, though, is always yours.

Competitive Market Analysis (CMA):

The list of comparable sales a REALTOR® brings to you, along with data about other houses in 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.

A CMA differs from a formal appraisal in several ways. One major difference is that an appraisal will be based only on past sales. Also, an appraisal is done for a fee while the CMA is provided by your REALTOR® and may include properties currently listed for sale and those currently pending sale. For the average home sale, a CMA probably gives enough information to help you set a proper price.

Appraisal: A formal written appraisal (which may cost a few hundred dollars) can be useful if you have unique property, if there hasn’t been much activity in your area recently, if co-owners disagree about price or if there is any other circumstance that makes it difficult to put a value on your home.

TIP: If you do order a appraisal, make it clear you don’t need an elaborate, or full narrative report, i.e., the kind that’s complete with photos of the house and neighborhood. Floor plans and a site map is sufficient in most cases.

Market Conditions – Is it a Buyer’s Market or a Seller’s Market?

A CMA often includes a Days on the Market (DOM) value for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months.

Your REALTOR® can tell you whether your area is currently in a buyer’s market or a seller’s market. In a seller’s market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer’s market, if you really need to sell promptly, offer an attractive bargain price.

If You Price High, Set a Schedule for Lowering the Price

Some sellers list at the rock-bottom price they’d really take, because they hate bargaining. Others add on thousands to the estimated market value “just to see what happens.” If you want to try that, and if you have the luxury of enough time to feel out the market, sit down with your REALTOR® and work out an advance schedule for lowering the price if need be.

If there haven’t been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn’t bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you’re tempted to dig your heels in.

Estimating Net Proceeds

Once you’ve been given an estimate of market value by your REALTOR®, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start looking for another home to buy.

To estimate your net proceeds, from the estimated sales amount, subtract the applicable costs in the three sections outlined below: seller’s costs, buyer’s/seller’s costs and closing costs.

Seller’s Costs: Subtract the following costs as applicable.

  • 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, your REALTOR® 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

Closing Costs:

As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you, no matter what local practice dictates.

Contact Us About Selling Your Home

If you are thinking of Buying, Selling or Investing in Real Estate, "Think Eslinger Realty"

Jeffery D. Eslinger

Realtor®

941.915.9961

941.922.3879 FAX

EslingerRealtySarasota@gmail.com


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Testimonials

  • “We were very happy with the service we received during our home shopping and eventual purchase. Jeff was very responsive to our questions, always easy to reach and quick to return calls when needed. Jeff’s knowledge of construction was helpful on more than one we viewed. We would not hesitate to recommend Jeff to anyone buying or selling a home.”

    — Ross and Julie Hiner, August, 2012

  • “Our family moved to Sarasota from Orlando. Jeff helped us find our home, It worked out very well. I was very happy with him. If I was going to sell or buy another house, I would contact him first.”

    — Michelle Fisher, April, 2012

  • “Jeff came and explained the Selling process to us. He really expressed how he liked our home. He was very nice, personable and helpful throughout the whole process of selling our home in Sarasota. I would highly recommend his services.”

    — Indira Battan, May, 2013

  • “Our family moved to Sarasota from Orlando. Jeff helped us find our home, It worked out very well. I was very happy with him. If I was going to sell or buy another house, I would contact him first.”

    — Michelle Fisher, April, 2012

  • Searching for, negotiating, and closing on a property is quite the process these days. With that said, I can attest that Jeff Eslinger is in fact, the ultimate professional. He has an impressive knowledge of the real estate market, is extremely cognizant in the area of building and construction and to top it all off he is both honest & straightforward in his methods. Above all, He has an ability to see the homes through your eyes; while never losing sight of your "must have" list and believe me ours was quite lengthy. He was diligent in his responses and if he didn't have the answer at his fingertips he would attain it within hours. I will further recommend him with the highest marks as his hands on approach and knowledge of todays market made this a much smoother undertaking than we ever anticipated. All in all, Jeff never gave up on his pursuit to find us the perfect home (even when we sometimes did) and he always made us feel like we were his most important client.

    — Nancee Jackson, January 2014

  • Jeff was very instrumental in helping us find and purchase our new home. We had very specific criteria which I know made the search difficult. He found us our "dream" house with all the criteria we were seeking and due to his intimate local knowledge, he found it before it went on the market which translated to a smooth process, quick closing and happy buyers and sellers. I wholeheartedly recommend Jeff and have in the past..

    — Chris & Melissa Tomasso, December 2013

  • I know Jeff for more than ten years. Who would be more qualified than Jeff to handle your real estate needs? - Third generation local Sarasota family home building company , spent his entire career in the real estate and building industry, grew up in Sarasota, honest, high integrity family man..

    — Lou Rendemonti, December 2013

  • I chose Jeff to be my buyer's agent and had a wonderful experience. Before i worked with Jeff, I had been actively looking for homes for about a year. As soon as Jeff started working with me, we found my dream home in no time at all. Jeff was always available to me, and would promptly respond to emails/calls. Our experience with Jeff while professional was also very personal, he made sure to listen to exactly what i wanted and wouldn't settle for anything less. As a first time buyer he made sure i stayed informed from start to finish, and his knowledge and advice were extremely valuable. When I finally found the perfect home for me, Jeff worked very fast to make sure I would land it at the price I wanted. He handled negotiating the entire deal very well and helped me coordinate all the other aspects of appraisals, inspections, and other services...

    —Kylie Jackson, December 2013


  • We were very happy with the service we received during our home shopping and eventual purchase. Jeff was very responsive to our questions, always easy to reach and quick to return calls when needed. Jeff’s knowledge of construction was helpful on more than one we viewed. We would not hesitate to recommend Jeff to anyone buying or selling a home..

    —Ross and Julie Hiner, August 2012

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