How To Get Your Listing Ready To Sell

11 Points All Home Sellers Should Know

For many of us, when we think about selling our home, our goal is to walk away with the highest "Net Proceeds" (most money) possible!  This post is designed to help you get to that point as simply, safely, intelligently, and inexpensively as possible.  Do you have to do them all? Absolutely not. You don’t have to do any of them.  Each of them, however, contribute to an optimal outcome.  Don’t do any?  You may end up disappointed in the end.  Do ‘em all…you’ll hit a home run.  

You may have motivating factors other than getting top dollar for your home. Perhaps you need to sell to accommodate a job transfer, or there’s a change in your family makeup, or maybe you want to close escrow quickly so you can purchase another home that you've submitted a contingent offer on.  But in each of those cases wouldn't you prefer the best financial outcome?  My job as a listing agent and a real estate consultant is to guide and advise my clients on exactly how to safely, effectively, and efficiently get to that finish line...and to do it with a smile.

If we’re going to truly be effective, we need to shift our mindset from that of a home seller to that of a home buyer.  We need to think like a buyer; even think like our buyers' Realtor.  Taking this point of view from the very earliest possible moment will not only open the door for the very best offers to land on our desk, but it will also build the foundation for a smooth and seamless close of escrow.
Below, I've outlined a number of key steps that, when addressed intelligently and thoroughly, will result in the best possible outcome at closing time!  Some of the items are outlined in greater detail, but please know this: Any one of these elements might be the one that catches your buyer's eye. We won't know which one it is until we're in contract...so let’s do 'em all!
 
1) Save your money.  Don't remodel for your buyer!
"Honey!  Don't you think that if we redo the kitchen we'll get a much higher sales price?"  This is such a common misconception.  The simple answer to this question is, Yes.  However, the practical, bottom line answer is almost always a resounding NO!  You may put a stunning new, $40,000 kitchen into your home and find out that your sales price did, indeed go up up...by $25,000. NO bueno!  In addition to the drama and pitfalls we often encounter throughout the remolding process, you've now netted a $15,000 loss and pushed back the sale of your home by 4 weeks.

I've been a paid consultant on nearly 75 flips.  If I could yell at the top of my lungs something I've learned throughout that process it is the fact that we will NEVER know what our buyer really wants!!  "Why not?"  Because we don't even know who our buyer is…yet!

This guidance doesn't come from real estate class, or a case studies.  I've seen firsthand, countless times, when a property was purchase, then updated and upgraded, only to hear at the very first open house, "Wow!  This is great!  I love it! If we just refinish the cabinets in white then put in that hardwood that we both love so much, this place would be perfect!"  Yes, they're already talking about ripping out the upgrades that you just installed.  It happens all…the…time.
"So what do we do to spruce up our kitchen?  It looks pretty sad." We spend a couple hundred bucks making it look twice as good as it does now.  Simply installing some new hardware or a refinish/re-staining goes a long way.  Then we let your buyer choose their new kitchen.  They're welcome to make those choices when it’s their house.

“But what about the sales price? If we don't update the kitchen then it's not going to sell for as much as the one across the street!"  That right!  It's not.  The one across the street has a $40,000 kitchen upgrade. So...it sold for more than yours will. There!  Isn't it nice to be told the truth? Price your home appropriately and you'll leave room for your buyers to remodel at their convenience...after close of escrow.

Don't make more work for yourself. Unless you are a licensed contractor, you're never going to make your money back on your upgrades!  "But what about that couple on TV?  Flip or Flop!  They ALWAYS make money!"  You're absolutely right. They do, 95% of the time anyway.  However, Tarek and Christina El Moussa will tell you the same thing I I'll tell you: The first rule of flipping is that you make your money when you buy...not when you remodel.

2) Get a home inspection and a pest inspection:
When you list your home for sale, you're actually listing your home...in its current condition...for sale.  Honestly though, do you actually know the current condition of your home, or do you just think you know?  Do you know if the floor under the tile in the kids’ bathroom is in still in good condition? Do you know why that upstairs shower doesn't seem to drain as well as the others?  Think about it. The truth is that we aren't selling what we think you own.  We are selling what you actually own.  Now, aren’t you curious to know what you actually own?  Then get your inspections done.

"Wait, what?  Me?  I don't want to pay for a home inspection!  Isn't it the buyer's duty to inspect anyway?  And heck...I have to disclose anything that turns up in the inspection, don't I?  If I don't do inspections...I can't disclose what I don't know...right?"  Yes.  Both of those statements are true, and I know that for some readers this comes off as counter intuitive, but bear with me while we dig more deeply. This is (among others) where many Realtors and I just don't see eye to eye.  I've seen too many tears and too much aggravation to sit idly by waiting for the inevitable obstacle to derail my clients' transaction.  Inspections will help us discover the true condition of the home. The findings will either be clean...or important.  Both of those findings are good to know.

Knowing the condition of your home in the beginning all but guarantees that you won't be disappointed in the end.  You'll know what you're working with.  You'll know the truth.  You won't be sweating it out during that anxious "home inspection time-frame.  You'll also have a much better idea of what proceeds you can expect from the sale because you'll know what you're actually selling. If there was a couple of quick fixes that would help not just secure the best offer, but facilitate the smoothest close of escrow...wouldn't you want to know what those are?

In the image above, Is that water damage? Is there a leak behind the wall?  Is this a huge problem? Nope!  This is where kids dropped their wet towels each day.  Needs a tough of paint, or a short piece of baseboard at the most, but it could catch your buyers eye and turn them away.

What do we need to do in order to show the home in its best light? Keep this in mind too:  Virtually all home buyers pay to have a home inspection and pest inspection done before their inspection time-frame expires. So, your buyers are going to discover the true condition of the house and all of its flaws. Then we inevitably wind up back to the negotiating table!  Wouldn't you rather know what's coming in advance, so you're best prepared to address it?

"What if there is something catastrophic that is discovered through a home inspection or pest inspection? What if we can't even afford to make the repairs? Then we're stuck!"  Think it about this way: If you can't afford to make the repairs, does that mean that the problem no longer exists?  Of course not!  The problem is real and we have real ways to address it.
"Oh man!  The roof has a leak and it's caused mold in the living room. You can see it right at the ceiling! We can't afford to fix the roof!"  I’m here to tell you that there are solutions. How many can you think of?  Here are just a few:

1. You could tell the buyers that you’re not going to fix it.
2. You can put the property back on the market with the disclosure of the roof condition.
3. You could issue a credit to the buyer.  
4. You could drop the price of the house.  
5. You could find a roofer that will allow you to pay him at the close of escrow so you don't have to come out of pocket.  
6. You can even call your home owner's insurance. "What. What?  Call my homeowner's insurance for a leaking roof?"  Yep!  Did you know that in many cases damage caused from a leaking roof or faulty plumbing can be claimed on your homeowner's insurance?  

The point is that it's best to find the problem areas so we can address them in advance. Again, keep in mind that these 'discoveries' are either going to come from you...or from the buyer a few weeks down the road. Now that you know in advance about a couple of repairs that might need your attention, you can remedy whatever the circumstance is proactively...without the pressure of a contract hanging over your head.

3) Maximize Curb Appeal:
Insert cliché here!  "You don't get a second chance for a first impression."  I want you to remove the following thought from your mind..... "Gosh, that doesn't look that bad!"
"It's not that bad" isn't the level we want to hold ourselves to.  Remember, we won't know which element of the home will be the one that 'closes the deal' with your new buyers, so we need to make sure that each element shows at its best. This starts with the first thing a buyer sees when they drive up to the property; the condition of the front yard and the front of the home, or what Realtors call "Curb Appeal."

Typically we know well in advance that we're going to be selling our home.  This is the time when we want to jump on the yard.  A little bit of fertilizer, some seed, some water, and some attention will take a yard from drab to dramatic.  Keep your lawn long and lush.  Keep your trees and shrubs neatly trimmed.  Keep bushes away from the siding of the house, and keep tree branches well clear from the roof.  Prune your shrubs so that they don't obstruct windows.  This accentuates the architecture from the outside, and brightens the rooms by letting the natural light in.
Although it's not actually considered "Curb Appeal," use the same idea for the backyard and side yards as well.  Keep it simple, bright, clean, and green. Just don't neglect them.

4) Start Packing:
Packing?  Yep!  Get on it!  We want your home to show clean, roomy, and inviting. If you're a typical American family, you've probably filled your home with...um...???...stuff!  We all have. Well, you're moving anyway...right?  You have to pack when you move, so why not start packing in advance?  Pack up everything (within reason) that's not necessary for day to day living over the next 75 days. Put it all in storage...or if your budget is tight, just neatly pack boxes into your garage and/or storage sheds. I've found "PODS" to be quite helpful.  This way you don't have to move your things twice.  Pack your things into Pods, then when you close escrow on your new home you have your Pods dropped into your new driveway.

Beyond decluttering your home, (is decluttering actually a word?) packing up your odds and ends makes each of your rooms feel bigger and more inviting.  Important too, is the fact that buyers typically don't care to see how your family lives in the house.  Yes, that means taking down that painting of Aunt Mable over the fireplace.  She'll forgive you.  She wants what's best for you too!  Depersonalizing the home will help prospective buyers visualize how they might add their own personal touches to their new home.

Bedroom Closets, Bathroom Cabinets, Linen Closets, Pantries, etc. should ALL be decluttered.  Your closets should be no more than 60% full. Uncluttered closets and storage areas tell your buyer that a family is living here now, and they've got plenty of room.

5) Clean, and I mean clean; DEEP CLEAN:
I recently asked a client to have his home professionally deep cleaned before we actively marketed his property.  He wasn't sure what I meant. What I mean by deep clean is that virtually every inch of every surface of every room is cleaned, dusted, and/or polished. Yep!  Under that little spinning plate thingy in the microwave, baseboards scrubbed, ceiling fans dusted, furniture polished, windows cleaned inside and out...and screens too.  Think of it like selling your car.  If you want top dollar, you get it professionally detailed!  “So how much does it cost to get your house 'professionally detailed'?  In this case, an army of experts deep cleaned his 3,300 sq. ft. home for $350.   Too rich for your blood?  Then grab some rubber gloves and get to work.  Heck, a couple of phone calls, pizza, and some Diet Coke might motivate some extra elbow grease too.  If not, at least you won't be hungry while you work. Make it clean, simple, and spacious.

6) Staging:

Keep it simple.
Keep it clean.

"But I'm not a professional stager!"  Right; but you don't have to be!  Have you ever been to a retail store?  The Gap?  Macy's?  Pottery Barn?  There; that's a good start.  Use those stores as models to help you "Stage" your home for sale.  Pay attention to details.  Make each area look like you're trying to sell whatever is on display. Towels in your linen closet? Folded neatly; with like colors together.  Pictures on the bedside table? Make them few; sparse...or gone.  You ought to have a lamp, a clock, and a book; done!  What about the closets in the bedrooms? Make 'em just like the racks at your favorite clothing store.  No...Not Ross or K-Mart.  I'm talking Nordstrom.  If you "Stage" the items at your house as if you were selling them and you needed to get absolute top dollar...  Hey, wait!  You DO want to get top dollar, but not for your candles and blankets.  You want top dollar for your home, so pay attention to the smallest details and you'll put yourself in a position to reap the highest reward.  Oh yea.  One more thing.  Remember that old argument?  Toilet seat up or toilet seat down?  The answer is easy: Neither.  Close the toilet…always.

7) Paint:

Crisp, clean, neutral, and inviting

Do you want top dollar?  Then you're going to have to get dirty...or you're going to have to pay someone to do that for you. The "Frozen" themed room is great for your 8 year old daughter, but might look like a daunting task to a prospective buyer.  Worse than that is that they might see that room as "A girl’s room."  Taking away the idea that it could be a guest room, a boy’s room, even an office or den.  Let your buyers decorate when they move in.  Let's give them a warm and inviting position to start from. Something clean, warm, and neutral has proven to yield the highest returns. Odds are, if you're home's been lived in, the walls are in worse condition than you might think.  Don't believe me?  Pull that bed; the one without the headboard, away from the wall.  Now go paint.
"What about the outside?"  Here's where things can get into a gray area.  Painting the outside of your home can be quite costly.  However, with fresh paint on the outside of the home, home inspectors and potential buyers may see fresh paint as responsible ongoing maintenance. "If the eaves are maintained this thoroughly, I bet the rest of the home is too!"   So the topic of outside paint should be looked at on a case by case basis.

8) Fix it:
What do I mean?  If it doesn't work the way it's supposed to work, fix it.  Example: The rear sliding door.  The never seem to work properly.  It's just another trigger, negatively affecting the buyers' point of view. A stubborn rear slider might leave buyers thinking, "If the whole house was maintained the way the rear slider was...we should run!"  That middle bathroom is still missing the handle for the drain.  5 out of 9 lights in the chandelier are burned out. That drawer in the kitchen has come off the rails.  Closet doors don't open and close smoothly?  I could go on...and I don't even live there!

None of these items are going to be expensive.  Not fixing them, however, could be. Remember point #2 of this post?  Get a home inspection?  The inspection report will leave you with an itemized list of items that you can tend to while you're preparing your home for sale.  Again, this is on your time, not your buyer's time.
9) Downsize your furniture:
Just 'cuz you own it doesn't mean you have to display it! Keep it simple.
If you have large furniture items, you may want to move them out, especially if your home is limited on square footage.  A large, ten person sectional couch is fantastic in a large Great-Room, but in a 1,240 square foot home, it probably consumes more square footage than a buyer is going to want to concede. If you have the means to remove bulky items from smaller rooms, your home will show at its best. Beyond that, keep in mind that in terms of staging, less is more.

In the room above, start by centering the room around the fireplace. Remove the love seat, remove the cards from the mantel, take out the TV and the TV tray, and the painting above the TV.  Arrange the two chairs and coffee table on one side of the room, with the lounge chaise on the other side. Ultimately, getting the most utility or usability out of the room with the least amount of furniture is what we're looking to accomplish.

10) Bring the outside in:
Add a plant or two to the family room and maybe a couple of live herbs in the kitchen and you're all set.  You don't need to have a green thumb, but if you can keep two or three potted plants alive for three or four weeks, you're in good shape.  If you absolutely love the atrium that you've turned your living area into over the past 7 years, great.  You can re-open it at your new home, but for now more than a few potted plants can make a home damp and musty on the inside.  We simply want two or three pops of color and freshness to brighten up the kitchen and family room.

11) Give each room a title:
"Here's the master bedroom, here's the den, and here's the game room" sounds better than "Here's the room where we keep all of our crap!"  If you've got that "extra" room full of "extra" stuff, you can guess where it should go.  That's right...pack it up!  Better yet, pack up 90% of it, and keep 10%.  The sewing machine and two dressers is now "our Craft Room". Look behind the clothes hanging in that room.  You might find a treadmill or and exercise bike.  Throw down a cheap Yoga mat and you've got an "Exercise Room". You get the point.  Each room gets a title.

As I mentioned at the top of the post, we'll never know which of these points are the most important until it's too late. So take the time, proactively, to show you house at its very best.

Good luck.  Don’t hesitate to ask for help.

#RESN

7 mistakes new (and veteran) investors make when looking to secure income properties.

Are you looking at buying rental properties this year?

Here are 7 mistakes many investors and landlords make…and you don’t have to.

I could sum up these seven short but important points with two words: “Don’t wonder!”

1: Don’t “Wonder” what you should buy. Know what you should buy.
If you don't know, learn.  I you don't know where to learn, ask someone, anyone who's achieving the results you'd like to achieve.  Do the research on your own.  Understand the difference between what you want to buy and what you should buy. This is a huge step and has to come before any other step.

You have to be honest with yourself.  Don't get drawn in by your personal feelings and emotions. Knowing what's best requires substantial research.  That said, when it comes to market research, ‘substantial’ doesn’t mean difficult. It doesn’t even mean that you have to do any of it yourself.  Call a Realtor or two, or ten.  Not only do they do this type of research…but they do it all the time…for free!  Use this research to bring certainty into the process. Be sure to know what you should purchase, create a plan, and then stick to it.

• Only spend the amount that makes financial sense.
• Determine how much cash flow you need to make.
• Never let emotion override the numbers. 

Be thorough in your internal research as well as your market research.  Do you need your property to be local, or can it be in an area where lease prices are higher and home prices are lower?  Are you going to manage your rental(s) yourself or will you be using a property management company? Should you buy a condo?  A duplex? An older home? Is there new construction, with loan programs that provide easy AND responsible entry into the rental market? Are there limitations as to how many units must remain owner occupied? All of these questions, and dozens more, are vital to decide on BEFORE you get in your Realtor’s car to go house shopping.

2: Don’t wonder how much should you spend:
First, determine how much you can spend, then determine how much you should spend. Do you have funds in reserves to update/upgrade/repair your prospective property, or does it need to be turn-key? Do you have funds to cover vacancies; months where you may have vacant properties? Find a lender near you that will sit down and discuss special loan programs?

3: Don’t wonder what your prospective property will rent for:
Ask a Realtor, or a team of Realtors to draw up a lease/rental survey for the area(s) you’re looking to purchase in.  Also, and this is key, do a simple ‘rental survey’ of your own!  Often, Realtors use MLS exclusively to find rental properties for their clients.  At the time of writing this post, my local market showed 51 homes for rent.  Compare that to 181 homes for rent in the same areas on Craigslist.  Use ALL of the data you can.  It’s all relevant, and it should all be considered.

4: Don’t wonder if the information you have on prospective homes is accurate:
The internet is full of sites posting real estate listings online, but is that information accurate? Virtually all of the information you’ll find online is fantastic.  Very little of it is inaccurate, however, I have seen, and continue to see gross miss information on several internet real estates. Beyond the miss information is the fact that the asking price is just that; an asking price.  The sales price is virtually always less than the asking price.

Each of these sites pulls data from the regional Multiple Listing Service; MLS, which all real estate agents have direct, live access to. However these online sites do not always pull the best, most accurate, most up to date information. For this reason, it’s important to get in touch with a local real estate agent that you can trust to get you the facts.  What is the property tax rate on the property that you’re writing on? 1%? 3%?  Is the Home Owners Association really $485 annually, or is it actually $485 monthly? Is the HOA solvent? In litigation?  Your iPhone friendly app may not give you answers to the really tough questions.

5: Don’t wonder what the seller property is looking for:
Even the smallest part of an offer can land you the deal you’d been looking for. See, "How to get your real estate offer accepted."  Proceeds, timing, a possible rent back, a quick close, a long close, inspections, etc. You/we may not know (although there are strategies to find out) the real motivating factor behind the sale of a property you may have interest in.  So addressing ALL possible terms of an offer will leave you with the best odds of having your offer accepted.

6: Don’t wonder what you’re getting:
Do your Due Diligence. If you’re not an absolute expert, or you’re not buying new construction, I strongly advise that you hire an inspector to perform a home inspection and a pest inspection.  Don’t let the market or a pushy agent lure you into buying without inspections.  If you have sufficient funds to literally demolish your new home and replace it, go ahead. Save the $225.  If not, don’t let a few hundred dollars stand between you and your security.

7: After it's yours, don’t wonder if your new property is being cared for:
Use a property manager. Include landscaping and/or housekeeping if you must, but don’t let your property go.  I personally know dozens of landlords with wonderful and respectful tenants, and I know dozens who've gotten out of the income property game all together. Realize that the behaviors and actions of your tenant can help or hinder the value of your home. This might include dangerous behaviors that may need to be disclosed to prospective buyers, in the event you choose to sell some day.

Now there are many, many more influences, considerations, and concerns to keep in mind but I hope that this post has at least given you more tools than you had prior to reading it.

All for now.

#RESN

How To Start Each Day As A Realtor

As Realtors, we're often stuck in that cliched "Analysis Paralysis".  No sure where to start?  Here are 16 specific tasks that might help nudge you toward productivity.

If you don't have a target...you're ALWAYS going to miss.  So, WHATEVER you do today, make sure it's focused directly on the specific market that you're going after.  Your goal ought to be to absolutely dominate in a particular market, development, side of town, price range or style of home, etc.  Focus on your target.  I've seen newbies dethrone the incumbent King or Queen of an area in as little as 18 months.

"But what do I do right now?"  Focus and execute, even the smallest tasks.

1. Schedule and Promote Your Open Houses
2. Call a past client to say hello. DO NOT talk about Real Estate unless they bring it up.
3. Generate Un-Solicited CMA's for homes in your target market (Comparative Market Analysis, or Comp Report)
4. Send Out 3 hand written notes that simply say hello, or happy birthday, or congratulations, etc.
5. Get in your car and preview properties in your target market. Leave cards.
6. Complete CMA's on 2 Expired Listings, then send to the owners with an invitation to meet so that you can explain likely reasons why the property didn't sell.  
7. Buy a coffee or tea for a friend you've not seen in a while.
8. Send Hand Written "Market Updates" to your target market.
9. Volunteer at a venue that your target market supports.
10. Schedule a training session for the part of the job that you feel least comfortable with.  For me, it was Transaction Coordination.  Despised it.  So I took a TC course and ended up loving it.  
11. Meet with a colleague to talk about what's working for them.  Share what's working for you.
12. Update your contacts.  Email, phone, address, Social Media.  
13. Effectively use social media for 30 minutes (10 each, for 3 platforms)
14. Claim and update your professional profile on ALL real estate websites.
15. Create an introduction video and post it to YouTube and Social Media.  
16. Contact 3 distant friends or relatives and ask them for referrals.

This list could go on forever, and each point ought to be done with undivided attention.  Give it a shot.  We'd love your feedback.

#RESN

How to Price Your Home For Sale

Home is where the heart is, but it can also be where the anxiety and stress is if you're planning on selling anytime soon.

Although selling your home can be incredibly stressful, with the right guidance and support it can be (and should be) a smooth, exciting, and lucrative experience.

One of the biggest sources of anxiety and stress come while trying to arrive at...and agree on...your home's list price.  Below I share a number of ideas, thoughts, strategies, and points of view that will leave you best equipped to tackle this seemingly daunting task.  Let's call 'em "the Dos and Don'ts of Home Pricing."

DOs

Consider your motivation and moving time frame
Do you have a new job that you're moving too?  How about kids starting at a new school? Be at peace with the reality of your unique set of circumstances.  Be realistic.  Do you really have time to 'test' the absolute limits of the market, or are you serious about making your move?

Consider all of three of these points of view when determining your list price.

Wear three sets of glasses!

• From A Buyers Perspective: You HAVE TO think from your buyer's point of view. How do they look for a home?  If you were a buyer...what would attract you? Your buyers are spending countless hours on any number of ubiquitous real estate apps or websites. Remember that.  In fact, your buyers' Realtor is doing his or her own version of the same process directly on MLS. 

• From the Buyers' Realtor's Perspective: You have to think about your buyers' Realtor's point of view.  Your buyers' agent is actually the one that influences the buyer.  Think about it like this.  Most parents don't go to the store with the idea of buying Captain Crunch cereal and Sponge Bob Krabby Patties!  But kids influence their parents' actions. Influencing your buyer is fantastic, but in if you influence your buyers' Realtor, the buyer's will be more prone to take action.

• Ah yes; From the Appraiser's Perspective. You have to think from the appraiser's point of view as well! If you've overpriced your house and you're still fortunate enough to find a buyer to pay that inflated price, the appraiser will probably pop that bubble, bringing you all back to the negotiating table. 

Rely on clearly understood "Comps."
Comparative Market Analysis, CMA, or "Comps." Using the following criteria will help establish a realistic starting point:

• City, town, or area: Outline your specific development on the map and use homes that are 'model matches' of your particular house.  If you can't do that, start with a half-mile radius from your home.
• + or - 10 years from the year your home was built
• + or - 10% of the square footage of the home
• + or - 20-30% of the square footage of your lot
• # of bedrooms...until you get to 5, then simply use 4+

This is a sound starting point. You'll want to find at least 5 properties that are very similar in kind to yours that have closed recently (within the last 90-180 days). If you don't have 5, broaden your search criteria. However, the less refined the search criteria, the less dependable your comp data will be.
Look at the median number of days homes are on the market; DOM:
Look at homes that have been on the market for 90 days or more without selling!  As of the date of this post, the average DOM for local homes is 41 days. If your "Comp" is still on the market after 90...there's a good chance that it's overpriced. You might not weight that comparable home as heavily as another.

What time of year will you be selling?
Ah, spring is here. Spring is considered the best season to sell a home since families are trying to get situated before the start of the next school year. However, fall is a close second since it comes right after the quiet days of summer when most people are away on vacation. Winter is usually the worst season -- especially in areas where it snows -- but also because of the Thanksgiving, Christmas, and New Year's holidays when people's minds are on socializing, not buying or selling a home. Note: This can be an excellent time to buy!

Look at inventory
Inventory simply means the current number of comparable homes for sale.  This is right out of ECON 101. Supply & Demand are inversely related.  Simplified...lots of inventory means that each home is worth less, and little inventory means more buyers bidding on each house, driving up prices.  What's your current inventory level? Are there more or fewer homes than there were 3 months ago? Is inventory increasing or decreasing?

Inventory above shows a 37% decrease over 2 years.  This reduces supply and ought to increase prices with all other variables remaining equal.

Consider the arbitrary but psychologically charged price caps
Although these numbers are truly arbitrary, we live in a society where they actually matter! We don't see a candy bar on the shelf for $1.  It's on sale for 99¢.  Billions; probably trillions of dollars have been spent by marketers around the world verifying that yes, we actually DO think that 99¢ is less than $1.  What does this mean for your home's list price? Don't list your home for $510,000.  List it for $499,900.  At $510,000 you'll miss ALL of the buyers who are willing and able to pay that much, but they never even saw your house because their search criteria was randomly capped at $500,000! On the contrary, if your home is undervalued at $499,900, it will receive multiple offers and likely bid up to or even beyond your estimated value of $510,000.  If that strategy doesn't actually work...guess what...your house wasn't worth $510,000 in the first place.

Look at Current Mortgage Interest rates
Interest rates change buyers' behavior

Low rates = More Buyers = Higher Demand = Higher Prices

Stable rates = Current market data becomes even more relevant

High rates = Fewer Buyers = Lower Demand = Lower Prices

Look at expired and cancelled listings
Almost nobody looks at these numbers, but they tell the rest of the story. This is a look into the recent past.  If a home didn't sell, it's a virtual certainty that it was overpriced. Keep that in mind when pricing your home.

Look at List Price vs Sold Price
This adds credibility to your "Comp" data.  It shows recent trends with regard to homes selling above or below their initial asking price.  For example: Over the past 90 days 144 homes sold.  Their combined list price was X and their total sold price is Y. Comparing those two numbers illustrates a trend of overpricing vs. under-pricing.  It usually only varies by about 4%, but can really help guide you in terms of direction.

Contact a Local Area Expert
The “art” of choosing the right price for your home comes after you've pulled the data you need to make an educated choice.  Your Realtor's experience & knowledge of your local market is not a logarithm or spreadsheet.  It's expertise.  Chef Ramsay can't tell you exactly how much salt to use, he tastes...and makes a judgement based on decades of experience.  Local experts intimately know things that home sellers have likely never even thought about, like...

• Which HOA is having financial troubles or is in litigation? 
• Which side of the street sells for more money; the hill-side, or the golf-course side? 
• Which developments have excessive special tax assessments or Mello Roos? 
• Did the school district change its boundaries recently, or is it going to? 
• What is the city doing with that empty lot on the corner? 
• Have you seen that updated FEMA Flood Map? 
• Are there any short-sales or bank owned homes left in your area?  

ALL of this knowledge comes from your Realtor's time and commitment. It's knowledge that your iPhone app and your aunt Mable who's a Realtor from out of town couldn't possibly know.

DON'Ts

DON'T look at your Zillow Zestimate as anything but a generalization

Ethically, Zillow notes that Zestimates should not be used for pricing a home.
Go ahead, use this figure as your starting point, but don't take it as a fact. These "Zestimates" are admittedly inaccurate.  In fact, Zillow  advertised, to Realtors, a free downloadable PDF file on how to overcome objections to their own data.  These Zestimates are virtually always wrong.  Sadly, sometimes they're HORRIBLY wrong!

DON'T consider what you paid for your home
Maybe you still owe $500,000 on a $280,000 house. Maybe you inherited the home and paid nothing! The only thing that matters is your home's value right now, not what you paid or what you owe.

DON'T listen to the News; both local & national
Ignore the News. No matter how "local" the news claims to be, it's not local enough to do anything other than create hype or scare the pants off of you.  That's what the News gets paid to do; freak you out.  What's happening within a major metropolitan area is rarely what's happening in your town...much less on your street.  Don't believe the hype; good, bad, or indifferent.

DON'T put too much weight into what is currently on the market.
Sure, those homes might be your competition, but they also could have been on the market and are never going to sell!  I recently saw a listing that had been on the market for 985 days.  How relevant is that?  Remember, what your neighbor 'wants' for his house and your other neighbor 'wants' for hers is no guarantee that either of them will get it. Yes, look at the active market, but more importantly look at what has closed recently (lets call 'recently'...90 days or so depending on location and price-point).

I encourage my clients to list at absolutely the most competitive price possible. This creates the highest number of showings. It also creates a bit of a 'feeding frenzy' which plants a seed of urgency within your buyers. Buyers usually have lots of options, and they won't have time to look into all of them. Price is always a motivator for prospective buyers and their Realtors, so let's make the list price an intelligent and competitive one. Consider best-case and worst-case: If the offer you receive is too low, you can accept it or make a counteroffer.  If your price is too high...you'll never get an offer to accept or counter.  That idea alone illustrates the importance of not overpricing your house.

Having a stale, overpriced house on the market is ineffective, inefficient, and frankly...embarrassing for the sellers and their Realtor.  When your home is priced right...it feels right, and the activity you'll see proves that it is.  THAT is when you know you hit the sweet spot.

RESN