Pricing Your Home

How To Price

How to price your home – one of the most important issues you will face.  Pricing will determine, among other things:

• How quickly your home sells

• How attractive your home will be to buyers

• How you will reach your financial goals regarding the transactions

Unless there are extenuating circumstances, such as your property being located in a high-risk, undesirable or unusual area, the listing price of your home will set the tone for your entire transaction.

That’s why my expertise and knowledge of your local marketplace is so helpful. I will gather statistics that quantify the prices of comparable homes in your neighborhood:

• That have sold

• That have not sold

• That are pending

• That currently are on the market

I will compare aspects of those homes against the unique features of yours. I will also analyze market conditions, the availability of mortgage funds, neighborhood reputation and characteristics, among other considerations, to create a Comparative Market Analysis (CMA). The CMA provides objective information that will enable us to make an educated, informed pricing decision designed to bring a speedy sale for the most advantageous price possible.

When selling, it is key to put yourself in a potential buyer’s shoes when considering price. A buyers’ main considerations will be location, age of property, its condition and style and of course, price. Thinking objectively about these matters will help you and me determine a price based on fair market value -- what your house is worth in the current market, not the amount you or your family would like it to be.

Key Aspects To Consider

How soon do I want to sell my property?

Statistics show the narrower the gap between the asking price and my estimate of value, the sooner an offer will come in.

How does my home compare to others in the area?

As a real estate professional, I have access to details about current listed and sold properties through the Multiple Listing Service. We will be able to see how much competition there is and what effect market conditions have had in your area. You can then determine your price by analyzing homes comparable to yours in age, size, condition and location.

What are buyers willing to offer?

Buyers focus on your home's market value, not your financial needs or past investments. Their perception of value is based on how your home compares to others with similar features and conditions.

Is there any harm in overpricing property, then dropping the price if it doesn’t sell?

Yes! Overpricing can deter buyers and delay your sale. A fair price aligned with market value attracts more interest and often results in quicker, better offers. Buyers usually prefer fairly priced homes over overpriced ones. An inflated price can even help nearby homes sell faster than yours!

But my house is worth so much more…

Emotion and pride should have no place in the pricing process. Sellers speak of value, amount invested and what they can afford "to take." Buyers consider only price, condition and other properties offered.

Should I leave room for negotiating?

It's better to price your home close to market value from the start. This attracts serious buyers and avoids appraisal issues. Overpricing can cause agents and buyers to overlook your listing entirely.