Setting seller expectations: How to price a home

Know the inventory, look at the comparables and give three options

Houses are very individualized. There are nuances such as wall paper, kitchen countertops, paint colors, etc., that all add to (or detract from) a home’s price.

When pricing a home, a good real estate agent will look at the inventory. He or she will know what has sold around the home, look at the comparables and translate that data into a reasonable price.

Pro tip: Give your sellers three prices. For example, if a home’s true value is around $1 million, offer: $1.1 million, $1,049,000 and $995,000. Let the sellers know which price you think is best, and tell them that you’ll support them and be their advocate no matter which one they choose.

That way, you’ve set the expectations, should the need for a price reduction arise, and controlled the range of options for the initial market price.

Peter Lorimer is the CEO of Beverly Hills, California-based PLG Estates.