When you decide to list with HomeBay, we kick off the process by helping you determine an accurate list price for your home. This post explains how we decide if you, as the seller, have realistic pricing expectations, how Redfin plays a role in helping us decide and how you can use our same evaluation process to make more money on your home sale.
HomeBay Wants You to Sell as Much as You Want to Sell:
We have a lot of the same interests that you do as a home seller. We do tons of work between listing and selling a property, and we don’t get paid until after a home sells. You also get don’t get paid until after your home sells, and you don’t want to to go through the stress of having your home prepped and ready for buyers only to have it sit on the market for months on end.
To put it simply, at Home Bay, we don’t just list to list – we list to sell. But to do so successfully, we have to be able to determine what a home is likely to sell for in advance. We also have to determine whether or not your price expectations line up with the fair market value of your home. Here’s how Redfin helps us figure it out.
Redfin’s Home Value Estimator:
Our initial conversation with a homeowner like you typically happens over the phone. On that call, we work to figure out if our services are the right fit for your home selling needs and if we’re interested in representing your listing. It’s a little bit like a job interview – our goal is to make sure that we’re the right fit.
During the call, we ask what you’d like to list your home for, then we do some quick research to evaluate whether or not you have a realistic idea of how much money you can expect to get for your home. We run your address through Redfin’s home value estimator and see if your numbers and their numbers line up. If we see a disconnect, it creates a red flag for us.
Redfin is a great initial barometer of value. In fact, we’ve actually found through testing that their system is more accurate than other popular home valuation tools, like Zillow’s Zestimate. Not only that, Redfin’s tool is often even more accurate than a human at determining values for California properties. That’s why, if you were to say you wanted to list at a price that’s significantly higher than Redin suggests your home is worth, we know we’ll need to dig deeper to figure out whether you have the right price in mind. Below is what we do specifically when there is a disconnect.
Limitations of Automated Home Value Tools:
If you and Redfin disagree on your home’s value, it’s time to ask some more questions. For example, is Redfin accurately capturing your square footage? Does their system have the right number of bedrooms and bathrooms accounted for in its data? If not, you may need to take a few steps to remedy any inaccuracies. Redfin pulls their data from tax assessor records, so if your square footage or bed and bath count is off, you can contact your local assessor’s office and ask them to update your property tax records.
However, if Redfin is reflecting the details of your home properly and you and their estimator still have a disconnect, it’s time to find proof that supports your pricing goals. If a number of homes recently sold in your immediate area for at or near your desired list price, you may be spot on with your list price intuition. In this case, we work with you to pull data to prove it. Remember to look at sold home data, not active listing data, for an accurate picture of home values in your neighborhood. Want help with this process? Ask us!
You Have to Nail the Price:
No matter what company you use to list your home, drilling down on the right price is the key to your home sale success. Data has proven that pricing your home above value leads to selling for 4% less than you would have if you’d listed at or below your home’s fair market value. You don’t want to fall into that trap and leave money on the table by overpricing your home.
Use the process outlined above as a guide on how to identify your perfect home price, and use Redfin as a valuable tool to initially help you. Doing so will allow you to nail the most accurate list price that will allow you to make more money on your home sale.
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