Who sets the home prices when it comes to real estate listing? Despite how it comes across sometimes – the agent, Zillow, nor the homeowner truly sets the prices. Let’s dive into who actually sets the home prices in our market!
Do real estate agents set the home price?
While it is up to your real estate agent to guide you on where to price your home – you have the ultimate say in what price you’d like to list your home at.
Your New Orleans real estate agent will review the comparable sales with you and discuss how your house differs. With this information and understanding of the current real estate market, you and your agent will decide how to price your home. Your agent may suggest a different number from what you’re thinking. That’s OK. Tell them where you’d like to list your home, and you can discuss with them whether or not that number is a good idea.
READ THIS: WHAT IS A COMP?
But Zillow says my house is worth…
Zillow doesn’t know what your house is worth. They are using an algorithm based on what other houses are listed for in your area, including square footage, beds, and bathrooms. This is all make-believe. Do not trust this as a guide for a home’s value.
READ THIS: ARE ZESTIMATES ACCURATE IN NEW ORLEANS?
I need this much money.
Here is a statement we hear A LOT. People make decisions based on what alleged price they think their home is worth. However, picking a listing price based on what you need to pay off or buy next is not the way to go. This usually sets you up for disappointment.
So, who picks the price?
At the end of the day, the homebuyer decides the home price. (AKA the “value”) Your home is only worth what someone else is willing to pay for it. That’s it. Period.
While this info may surprise many – once you mull it over, it makes total sense. As your New Orleans real estate agents, we are here to help guide you through this honestly.
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