4 Steps To Pricing Perfection

I recently listed a house where the Seller’s had interviewed 10 agents.  When I talked to them, one of the frustrations that they had was when it came to pricing, all of the agents showed up with a print out of the solds in the area and an average price solely based off of that information.  Their comment to me was ~I can do that on my own using www.Zillow.com.   Hmmm.  It’s a rare but interesting moment when you get to truly see how your service is perceived in the eyes of the consumer.

I let them know that I actually use several different methods to evaluate price on a property and then start to look for patterns.  Here are the tools that I used which ultimately won me the listing:

~ First is what I call the appraisers method.  I take the sold properties that I think are most comparable to the property that I am pricing and start making adjustments.  The first thing I do is a square footage adjustment of $100 per square foot.  Then I start adding and subtracting money for upgrades, lot size, view, etc.  Anything that you feel would affect the price positively or negatively.

~ Second is an average price per square foot of that immediate neighborhood.  In this case I don’t worry about how comparable the houses are in terms of size, but I am looking for a close in grouping of the same builder, age, etc to see what the average price per square foot is and how it calculates out on this house. Note: price per square foot does not work well if you are comparing view properties with non view properties since that can have a significant impact on the price.  Make sure you are using properties with similar views.

~ Third is to find the ratio of sales price to tax assessed value.  Granted the tax assessed value is rarely the same as the sales price, but I find that there is a pattern in the ratios.  Take the average of this pattern and apply it to your house. * When you are doing this, make sure that you are using the same tax year for all of the properties.

~ Fourth is to determine the radius that you think a Buyer would search around your house and determine the price per square foot for the entire area so that you know how competitive your property is with those in the immediate neighborhood as well as others that Buyers might be looking at.

In the case of the clients that I mentioned in the beginning of this post, all four methods produced a fairly tight range that we were able to take the average of.  Interestingly enough, my price was in line with what all of the other agents had give them.  What was different was the way I went about it and articulated it to the client.  How you deliver and support your information is important.  Try these methods on your next listing appointment and see how they work for you.

Leave a Comment





Signup to receive Nicole's blog posts via email weekly:

Other Posts

The #1 Question Agents Don’t Ask, But Should

October 11, 2024

If I told you one question could lead to happier clients, and more sleep for you would you add it to your conversations? I’ve coached hundreds of agents, and every time I bring up this one question it ends up in a blank stare followed by – I never thought to ask that. Ready for…

Read More

If You’re Afraid To Take A Vacation Because You’ll Lose Clients – Read This

October 4, 2024

You’re ready for a vacation, but there’s a voice in your head telling you now is not the time. You have clients that might need help. Or, you don’t have any clients and can’t risk being gone when they finally call. You’re afraid that if they even get a hint that you are somewhere else…

Read More

Your Business Is Meant To Support Your Life Not BE Your Life

September 27, 2024

Here’s what most agents think when they get into real estate: This is going to be amazing! I now have unlimited income potential, the ability to set my own hours, and live a great life. And then one of two things usually happens: You either get busy and push off life until things calm down…

Read More

Announcing The Prosper Mastermind: The Secret to A Profitable Business and An Amazing Life

September 20, 2024

It’s been a heck of a year. You’re proud of yourself for having made it this far. You’ve got lots to celebrate, but if you’re being honest, there are some things that need to change if you’re going to keep doing real estate going forward. Maybe its: Income consistency – The feast / famine thing…

Read More

Expand Your Window of Opportunity

September 13, 2024

Crisp mornings, pumpkin spice lates, leaves that change to vibrant hues of gold and orange –  and a clock that seems to tick louder by the day when it comes to income goals for 2024. Welcome to Fall. In the past, I would get really anxious right about now. I would look at the calendar…

Read More

A Message From Your Future Self

September 6, 2024

There is a future you who is glad you never gave up. Keep going! Things may not be as dire as wanting to give up, but September can bring a sense of urgency in real estate.  You look at the calendar and realize there is only so much time to make close transaction before the…

Read More

It’s Okay To Opt Out Of The Conversation

August 29, 2024

It’s been 2 weeks since the NAR settlement. How’s it going? Scratch that – don’t answer that. Better yet, don’t ask the question in the first place. Yes, there have been major changes in our industry. The impact to our business, depends on who you ask. I’ve talked to agents who: Can’t get Sellers to…

Read More

When You’re Behind, Ready To Take On The World, And Everything Is On Hold

August 23, 2024

It happens every single time! Fortunately I know it’s a pattern so I’m not completely freaking out, but it goes a little something like this: June – school gets out and all is right with the world. I’m done with routines, ready for better weather and to spend time with the boys. It’s awesome. Until…

Read More

We See Evidence of What We Believe

August 9, 2024

Whatever you believe to be true is what you’ll find evidence of in your daily life. I was reminded of this yesterday. It was August 8th.  A big day in the energy world. It’s a day to set intentions, manifest and connect to the Universe. Basically, a day to go full Woo. But I didn’t…

Read More

Things I Would Win A Gold Medal In If They Were An Olympic Sport

August 2, 2024

I love the Olympics! The stories, the athletes, the events, all of it! It’s as inspiring as it is entertaining. The athletes work incredibly hard to compete at that level, and while it’s work, they are leaning into talents that come naturally to them. Which got me thinking – what if we focused on our…

Read More