The value of your property is determined by what a buyer is willing to pay in today’s market. Misunderstanding this key concept is a common mistake among sellers, who often want to price their property based on how much they want it to sell for.

Buyers don’t care about what the seller wants for the property except in the case of unusual one-of-a-kind properties. Buyers decide how much to pay for a property based on comparing the property to how much other ‘like properties’ sold for in the neighborhood, as well as based on the current supply of homes for sale in the area. Pricing property at market value (instead of above market value) maximizes the total economics of the sale for sellers.

So What is Your Property Worth?

Here are some factors that don’t affect the value of your property:

1. What you paid for your property does not affect its value
2. The amount of cash you need from the sale of your property does not affect its value
3. What you want for your property does not affect its value
4. What your neighbor or another associate says your property is worth does not affect its value
5. What it costs to rebuild your property today does not affect its value
6. What another real estate agent says your property is worth does not affect its value  
7. What an appraiser says your property is worth does not affect its value

1. We will agree on the price and our team will immediately go to work for you
2. We may choose to TEST the market for a specified period of time. If there are few showings and no offers, then we will make a market price adjustment

We recommend sellers not list their property with a real estate agent who quotes them the highest price. Expect the best agents to suggest a price range to help you make a decision. Some agents will suggest a high sale price to lure you in and then come back in a few weeks for a heavy price reduction. This is called ‘buying a listing’.

If you bought AAPL stock a year ago and wanted to sell it today, would you call your stockbroker and tell him that you insist on selling at a 200 percent profit or would you ask them to tell you what the market price is? This same principle applies to real estate.

The HausAngeles Pricing Approach
At HausAngeles, we are pricing experts. When HausAngeles works with sellers to price their home we prepare a thorough, well-researched, market analysis on every listing. This analysis includes data/information on actual properties sold in the neighborhood, active listings with days on the market for each, as well as information on recent neighborhood home price and supply trends. As a result, we typically sell our listings at very close to asking price.  

Benefits of Proper Pricing

1. Faster Sale: When your property sells faster, you save carrying costs, mortgage payments, taxes, insurance, and other ownership costs.
2. Less Inconvenience: If you have sold a property before, you know the energy it takes to prepare your home for showings, keep the property clean, make child care arrangements, and generally alter your lifestyle. Proper property pricing shortens market time.
3. Exposure to More Prospects: When you price at or slightly below market value you open your home to more people who can afford it. Correct pricing is extra important in a declining home price environment.
4. Increased Realtor and Salesperson Response: When other realtors are excited about a property and believe its priced right, they make special efforts to contact all their potential buyers because correct pricing sends an important signal to the real estate community about a sellers reasonableness and mindset.
5. Better Response From Advertising and Sales Calls: Ad calls and sign calls more readily turn into showings when price is not a deterrent.
6. Higher Offers: When a property is priced right, buyers are less likely to offer low, for fear of losing a good property.
7. More Money to Sellers: If a property is priced right, the excitement of the market produces higher sales prices. You net more in terms of actual sales price and lower carrying costs.

1. Over Improvement: Improvements should generally be made for enjoyment, not for resale. You cannot add an item to a property, select it to your style, use it, and then expect a buyer to always pay the cost of the improvement.
2. Financial Requirements: Your need for money does not increase the value of your property. Base your opinion of value on recent documented sales price and current market trends.
3. Buying in a Higher Priced Area: Values are location specific. High values in your new destination do not increase the value of your existing property.
4. Original Purchase Price: Chances are you paid fair market value when you purchased your property. It's not that the price was too high at the time of purchase; rather, the market has experienced subsequent change.
5. Negotiation Tactics: Buyers may offer low, but they will do that at any price. It is easier to negotiate up to a fair market value than to an inflated price.
6. Move Isn't Necessary Even if your move is not necessary at the moment, it is important to price correctly to preserve your marketing opportunities when the move becomes urgent.
7. Trying it at a Higher Price for a Couple of Weeks: The majority of activity on a listing occurs in the early period of marketing. This happens because Realtors maintain an inventory of active prospects that have been cultivated over time. When a property is newly listed, Realtors® arrange for these prospects to see it. Once this active group has seen the property, showing activity decreases to only those buyers new to the market. For this reason, it is important that the sellers have their property in the best condition and at the best price when first exposed to the market. You get to price your property correctly just ONCE. After that you’re always chasing the market.:
8. They Can Always Make an Offer: The wrong price attracts the wrong buyers, not the right ones. Realtors find properties by price range using the Multiple Listing Service. If you price your property above its range, it will not appear on the printout