Hi All,
I'm racking my brain regarding the list price of my home that will hit MLS next week.
(I have to relocate for a job)
A little background:
Home was purchased as a short sale 5 years ago for $410K. I've put probably $15K into renovations along with a whole slew of 'sweat equity'. The local market has been booming lately with similar homes going for 10-15% over list price (SF Bay Area).
The most recent comps sold in the last 2 months were:
5/14 - $453K (listed for 398K)
5/30 - $432K (listed for 432K)
7/3 - $467K (listed for 399K)
8/9 - $427K (listed for 399K)
In terms of condition, my listing will be fully renovated, while all the previous similar sales were partially at best. The location and other factors like proximity to major streets, sq. footage, layout are all similar.
So, my question is should I follow the pattern of listing low ($399K) with the assumption that the price will be bidded up, or should I price on the low end of the market rate ($427K) and hope that its bidded up from there? The inventory is extremely low in my area (decent schools), and there are a couple of similar units on the market listed for $499K.
My agent suggests to list as low as possible (of course). Understandably, the market has slowed mainly due to the quick bump in rates. At the moment, my agent is suggestion sticking to the list low method and come in at $408K. I'm on the fence between listing here or maybe bumping it to $429K. I know there is a lot of price psychology out there, but any tips or experiences are welcome.