Why Accurate Preowned Home Pricing Matters! View Latest MLS Sold to Unsold Statistics for Collin County

At the end of the day, every home has a price the market will agree with and knowing that approximate price tag is the first order of business for any successful home sale. Over the years ARG has listed and sold 100's of area pre-owned homes for our Free Move-up buyers and today, after nearly 13 years, ARG enjoys one of the highest success rates selling our client's listings and that is due to a careful understanding of value. Read ARG's Marketing Plan.

Also, many ARG clients enjoy up to a fully commission free sale of their home, meaning even if they must sell for less than list price, their NET proceeds from the sale of their home would still be thousands of dollars higher than if they listed with a traditional full cost broker charging up to 6%.   

All Homes are Sellable When Priced Right

If you carefully consider home pricing as a science problem to solve, it’s hard not to conclude a "cause and effect" relationship with regards to pricing, and that is, when you price right, you sell, and when you price wrong, you don’t.

It should be no surprise, that everyone is looking for a good deal. I can't ever recall a buyer not wanting to try and negotiate to get a lower price. While sellers want more, buyers want to pay less. However, when listings don't sell after months of MLS exposure, the number one reason is the listing price is too high, but why do so many sellers get their home's market value wrong? Well, to many, pricing a home is personal, emotional or attached to the money they need to buy another home. To some, the idea of speculating on a higher sales price is just too good to pass up. Some sellers may be just trying to recoup what they spent.

Sure, there are exceptions for exceptional homes. These are the special listings that have been professionally remodeled, updated or on exceptional dream lots. When this occurs, we are the first to agree to go higher than Comps.

 Infographic: Collin County "Pre-owned" Sold/Unsold MLS Data, Last 180 Days

Data shown reflects raw MLS statistical data only and does not account for any expired or canceled listing that may have been relisted and sold. Data does not reflect new construction. The percentage figures shown reflect current seller expectations and corresponding buyer behavior. As percentages change, general market direction can be better understood.

• A Total of 150 "Pre-owned" MLS Listings SOLD in Prosper.
• A Total of 83 "Pre-owned" MLS Listings Expired or Canceled in Prosper.
• That means ~55% of Prosper Listings Expired or were Canceled.
• In Frisco, ~34% of pre-owned listings Expired or Canceled (1160 Sold vs. 405 Expired or Canceled)
• In Plano, ~29% of MLS pre-owned listings Expired or Canceled (1399 Sold vs. 408 Expired/ Canceled)
• In McKinney, ~28% of MLS pre-owned listings Expired or Canceled (1355 Sold vs. 387 Expired/Canceled)
• In Allen, ~24% of MLS pre-owned listings Expired or Canceled (630 Sold vs. 153 Expired/ Canceled)

What Factors Do Sellers Need to Evaluate Concerning Their Homes Market Value?

I think we can all agree that no two homes are identical. Each home will have a unique combination of factors that will identify its unique value. The following key factors can either contribute to a more positive (more valuable) or a less positive impression (less valuable).

• Location
• School District, or specific school attendance zones
• Lot Characteristics, lot size, landscaping, proximity to noise and roads, etc.
• Condition, updates, upgrades and or degree of obsolescence
• Floorplan layout affects value

Perhaps, if there was a visual way to rate individual homes on a 0-10 scale for the purpose of comparing individual homes against relevant closed "Comps," it might then become easier to properly price pre-owned real estate more accurately. In the example below, you would not price this home based upon community COMPS that scores with 8's and 9's. Today's buyers, thanks to information technology, can easily compare homes that sold to homes that are for sale and draw general conclusions about how they should price their homes.

A Common Mistake, "Comping" Your Home With the Wrong Floorplan

If you are going to sell your home, then you must attract a buyer, and that means your home's price must be justifiable when the buyer agent pulls a "market comp report." For example, if you're trying to "Comp" your home, which has a floorplan with 1 bedroom down, and 3 bedrooms up, with similar sized homes having 2 bedrooms down and 2 bedrooms up, you would not be using the right "Direct Comps." The same would apply if your home has 3 bedrooms up, but only 1 bathroom. In that instance, you would need to "Comp" with other sold listings having 3 bedrooms and 1 bathroom up, or make an appropriate price adjustment reduction reflecting the floorplan difference. 

The fact is, not all Square Footage is worth the same "price per square foot" dollar value. Over time, you can see the measured difference in pricing based upon floorplan style.

Your Home is Not Officially "Priced" Until The "Fat Appraiser" Sings

If you thought your Realtor's CMA Report seemed low, you could be in for a shock when the appraiser issues their report. Thanks to 8 long years of over-burdensome regulatory red-tape, today's appraiser, who is now at an arm's length from all parties, is meaner than ever. Their job is to crunch COMPS and compare values so that their value determination is not overvalued, or they risk going to jail. Thus, appraisers are more likely to under appraise. When a home appraises for less than contract sales price, for many buyers, that becomes an automatic contract out, especially when the seller is not willing to renegotiate. What this points to is the need for accurate CMA Reports, and listing your home for the correct price. 

That is why job number one is always getting your home priced right prior to listing. Agents who do this, have the highest success rates selling their client's homes. Agents who toss darts at values, the lowest success rates.

For Listings that Linger on the Market Too Long, Other Problems

• You listing risks becoming stigmatised and more frequently avoided due to too many DOM (Days on Market). 
• Appraisers will note the excessive days on market and may use that number as a negative indicator of value.
• Your listing increasingly becomes the target for "Low-Ballers" looking for a deal.
• You wind up reducing your price to a level that is below what you could have sold for had you priced correctly day 1.
• Showings start to become a major headache and nuisance to accommodate.
• Open Houses don't work, but these are mostly marketing tools for Realtors® to find future clients.
• Your listing finally expires or you cancel.

Facts Don't Lie. Statistics Don't Lie Either, Rather They Teach

If you're considering selling your home and want to gain a general pricing parameter for what your Prosper, McKinney, Frisco, Allen or Plano home might be worth, then try our handy online home evaluation tool. If you're looking for experienced Realtors® who understand the market and who will offer an honest market evaluation so you can have the facts you need to properly price your home for a successful sale, then the Realtors at ARG stand ready to serve your real estate needs, and if you're buying a new home, we offer low cost to 100% commission free listing services too, so you can keep the largest closing cost expense, the agent commission in your pocket.