How is a listing price set on a home? I realize that all home owners think there house is worth more then it really is and over price it. But once you sit down and show them the facts, and the comparable homes around them and what they have sold for in the past year. Then do you just kind of talk it out and come to a agreed listing price? But how do you know if your still listing too high? I guess you can also say if the house does not sell in x amount of days we need to lower it, but you are losing those crucial first few weeks where the house gets most of its traffic. Thanks for the feedback.

Just a question but have you gotten any trainng so far?

thanks man

I know this sounds simplistic, but when you present your CMA if you show homes in the neighborhood that are inferior to, equal to and superior than the property that you are trying to list, it really gives the owner a "bracket" for where their house needs to be priced. Also, if you know before your listing presentation what price range they think they should be in, you can bring information on all of the listings in the area in that price range to show them what they will be competing against. I think that having that kind of data really helps. Of course, there are always owners who don't care what the data indicates.

I lost a listing because the agent I was up against agreed to list the house for $50k more than it was worth (it was only a $200k house, so that is a huge difference). A year and 3 or 4 price reductions later, that house still hasn't sold. In fact, the owner got his RE license in the meantime and has it listed himself.

Many factors are involved in determining a list price for a home. You need comps from the surrounding areas (what other similar homes sold for). Location and lot size must be taken into consideration. Upgrades as well as appreciation also play a factor. Besides that, of course there is owner pride, so they want to make something on the home. Just try to keep the price reasonable and fair for your seller, but don't go overboard

I guess I was just looking too much into it, we were talking about this the other day in training. I guess the more homes you see, and the more listings you have the easier it is to do. thanks

I know what a COMP is, but I've forgot what it stands for, any help please? Thank you!

CMA - Comparative Market Analysis

I know what CMA stands for, and I know what a COMP is, but isn't it short for something?

Comparable :p

Ahh, doh! That's right, thanks Paul!