Pricing Your Home

Pricing your home is both an art and a science.

Achieving the optimal price is the result of both objective research into comparable properties and a gut feeling about your property and the current market. 

The right price should:

Attract serious buyers and allow you to earn the most money possible. The fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. Although the price is set by you, the value of the home is usually determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you dearly in the end. 

The Importance of Proper Pricing

  • Faster sale
  • Exposure to more buyers
  • Increases Realtor response
  • Generates more advertising/sign calls
  • Attracts higher offers
  • Means more money to seller
  • Avoids being "shopworn"

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing. 

Common Reasons for Overpricing

  • Over-improvement
  • Purchasing in higher-priced area
  • Original purchase price too high
  • Lack of factual data
  • Bargaining room
  • Move isn't necessary
  • Assessed value
  • Emotional attachment
  • Opinion of family and neighbors 

Dangers of Overpricing

Most of the interest in your home will occur in the first few weeks. Pricing a home properly will create immediacy in the minds of agents and buyers because it indicates you are serious about selling, not just fishing with an inflated price.  Don’t start with a high price and assume you can reduce it later either. By the time you lower the price, interest will have waned and now you are stuck with a “questionable” property.

Informed buyers know their price range and are waiting for the "right house" to come on the market. If a house is priced right, it will sell quickly. Avoid the trap of overpricing.

The Role of a Real Estate Agent in Pricing

Good real estate agents implicitly know the lay of the market.  However; we don't tell you what we think your home is "worth". The market determines value…together we determine the price. Fortunately, we have some measure of control on price factors including:

  • Marketing time
  • Financing alternatives  
  • Condition
  •  Exposure method

In addition, our agents can provide you with a comparative market analysis (CMA). A properly formed CMA provides the seller with an understanding of how their home stacks up against others like it to form a better idea of asking price. It helps immensely to know your competition. Since there is no "exact price" for real estate it is critical to identify market trends, know interest rates and estimate your net proceeds. 

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