My Agent wants to list my house too low. I think it’s worth more

Are you selling your house? Do you think your house is worth a lot more than what your agent is telling you?  If this is the case, you should stop and do some research before you jump to conclusions and possibly fire them.

Here are a few things to remember:

  1. First thing is that just because you may have made improvements to your home over the past couple years, doesn’t mean you will get dollar for dollar value added to your homes market value.
  2. If your neighbor’s house is listed at a high price, it does not mean that your house is worth what is listed.  Remember, anyone can list a house for a high price, and it does not mean that it is actually worth that amount.

3.       IT IS WHAT IT IS.  The value of your home is based on closed sales in the area. Therefore if similar homes to yours are selling for a certain amount, odds are yours is worth something very similar.  How to determine market value

  1. Use COMMON SENSE – Ask yourself “Why would anyone pay X amount of dollars for my home, when they can purchase a similar home down the block for X amount less?”  You need to look at listings in your area to determine which ones are competing with your home.  If you believe your home is in better condition and offers more than your neighbors, then yes list it higher.  But, if it is of similar condition then it will probably be listed at similar prices.
  2. I paid the same price for my home 5 years ago that my agent wants to list it for today.”  This may be the case. Homes tend to gain and lose value over the years.  Every market is different and it is up to an expert in your area to tell you what the market is doing in terms of current value.
  3. “ZILLOW & TRULIA are saying my home is worth X amount.” – Zillow and Trulia are not accurate. They determine their value from a mass database of properties.  Many times that data is outdated or incorrect.  Don’t ever rely on their numbers!

In conclusion, prior to choosing an agent make sure that they have knowledge of the market and values.  Google them, ask around, and interview them.  There are thousands of agents in the country, and half of them are only part time, if that!   If you are still unsatisfied with the agent you hire, then hire a certified appraiser to give you a true market value.  A typical appraisal (Anywhere Appraisals) will run you about $300.  It is well worth it in the long run.

So next time you think your agent is listing your home too high, be sure to do some research before making any decisions.

 

About the author

Nicholas Conteduca

Broker/Appraiser

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