Hi, I’m Milana Ostroy, and I’m here to discuss today’s Hot Topic: All About List Price! This discussion is really tailored to Sellers, but Buyers listen up because if you understand how sellers price you have a better chance to be the winning buyer!

There are 2 parts to the equation to determining list price. They both start with diving into data and numbers and end with my gut feeling based on my experience.

Part 1: Price Range

The first part is what price range can your property sell for realistically in today’s market? Sellers ask me why price range, what is our target price? Here is where I remind my sellers- to think like buyers! Most buyers shop by payment not price tying them to a price range rather than a single number. Also buyers search in their area by what primarily? You guessed it, Price!

So Here’s the 5 Data points I choose to look at to determine the price range:

1. What else can buyers get for their money and how does that compare to your property? In other words, What else can buyers buy today in the same price range and area as your house? What about in surrounding areas? Are there a lot of choices or not?

2. What properties are currently in contract? How long did the sit on the market before they went into contract and how do those properties compare to yours?

3. What has recently sold in your specific area in the last 90 days unless it’s a unique property? What was the List to Sale price, how many days on the market and if it was a multiple offer situation or not.

4. What didn’t sell to determine why and how that affects your property.

After that data dump and sift, I have a good pulse on the price range! At this point we are narrowed down! We have a range, but we still don’t have the single list price we need to go to market with.
So we go to part 2 of the equation: which pricing strategy will yield you the highest possible price

Part 2: Choosing the Right Strategy

There’s really only 3 strategies and I’m sure you know them: its simple, price at, below or over market value. If you price under you are going for a multiple offer situation, if you price over you believe you need to leave room for negotiation and if you price at market value you are guessing that what you think is right?

So, which pricing strategy is right for you? I again reference the data, but I focus on studying the sold listings specifically. I’ll look at how quickly properties sold in different price ranges and their list to sale price ratio. Then I look at our price range, and I look at which price within our price range did properties sell faster and for more and add my experience and Boom got a list price recommendation!

If you need a Real Estate agent, I’d be more than willing to help you. If you are looking at the option of buying a home or selling a home in the San Francisco or the Peninsula in the near future please reach out to us.