I remember when real estate in Orlando was booming at an alarming rate back in 2005. Orlando listing agents were able to put up ridiculously high listing prices and people were paying it because they were afraid that by the following week prices would be even higher.
In today’s Orlando real estate market it’s more important than ever to price your home accurately from the start. Have you ever wondered how Orlando real estate agents determine the right asking price for there house? There are a many different factors that can help in determining the value of a house although, it’s not, and never will be an exact science.
Everyone knows that supply and demand dictate the asking price of any product, especially real estate. So, if the supply is low the price will be adjusted upward to meet in order to meet it. Basically it comes down to the sales price of the most recent comparables in the same neighborhood that the home is located in. People can speculate about the market and how much a home is worth until they’re blue in the face but recent sales in the neighborhood are what matters most when it comes down to it.
The appearance of the property, it’s size and it’s location play major roles in coming up with the asking price. Upgraded features can sometimes warrant an upward adjustment in the asking price. However, if you haven’t had any 2nd showings or offers after two weeks or so, then the price is probably a bit high. Depending on what your situation is you can either lower the listing price or stick to your guns for the long haul. Setting the prices on new homes is a different beast all together because the developer is the seller and the better a developer understands the market, the more successful they will be. The builder must first know how much it costs to build the home. The developer offers different models and the homes prices are then based on type, square feet, features and lot sizes. After factoring in construction cost and the profit a builder needs to make, a sale price is born!
One of the problems encountered with existing homes is that it was decorated with someone else’s taste. This can sometimes be a plus, but most of the time it isn’t. As an Orlando listing agent I’ve had to encourage several clients to paint over that burgundy wall or remove the rusty chandelier from the hallway and if needed, I will recommend that the whole inside of the house be painted white or off-white. When you realize what a difference it makes in the eyes of a buyer, it’s well worth it.
The curb appeal and amenities of a home also contribute to determining the price. Home buyers are out looking for the best deal, so if your house is the best deal out there, then it will sell the fastest. If not, then your home will probably sit o the market for a while.
Need help coming up with a listing price on your home? Feel free to contact one of our Orlando listing specialists for a FREE consultation. we’re here to help!