What Should You Do If Your Real Estate Agent Suggests a Selling Price That Seems Low?
Posted on: 24 February 2017
One of the first steps involved with listing your home with a real estate agency is meeting with an agent to sign paperwork and determine an asking price. If the agent you choose suggests an asking price that seems a lot lower than what you had hoped for, you may wonder what your options are.
Discuss It With the Agent
The first thing you can do is talk about it with the agent and ask him or her why this price was suggested. Keep in mind, agents see homes every day. They know the current market, and they know the prices similar houses have sold for in recent weeks and months. The reason your agent is telling you the price he or she came up with is not simply based on guesswork. Agents suggest prices based on the market. While you do not have to go with the price the agent suggests, you may want to consider it simply because of the knowledge the agent has.
Get an Appraisal
If you are still not sure what price to ask for your home, get an appraisal completed. A house appraisal costs around $313, but it will reveal a lot to you. The appraisal will tell you the fair market value of your house today, and this is a good basis to use when coming up with an asking price.
It's important to remember that anyone who buys your home will also need an appraisal, and that person's loan will be based on the appraisal amount. So not only is it important to price your home right so that it sells relatively quickly, but it is also important so that the buyer can get a loan on it. If the appraisal the buyer gets comes back way lower than your asking price, the lender might not approve the loan or may only lend a portion of the value of your house. Ultimately, this could cause the deal to fall through.
Choose Your Price
When it all comes down to it, the house is yours, which means you will get to choose the asking price you want. Taking professional advice from your real estate agent is very helpful in this, though, and getting an appraisal can help, but it will come down to what price you really want.
If you are ready to sell your home and have not yet talked to an agent about it, contact one today. A real estate agent will gladly come to your home to talk about selling your house.
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