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The right price means a successful sale...
Pricing your home is both an art and a science. Achieving the
optimal price is the result both of objective research into comparable
properties and a gut feeling about your property and the current market. The
right price should:
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• Attract buyers
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• Allow you to earn the most money possible, and
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• Help you sell as quickly as possible
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The simple fact is… price
is the number one factor that most homebuyers use to determine which homes they
want to view. Although you set the
price, it's important to remember the buyer determines the value of the home.
Try to avoid allowing your enthusiasm to impact your better judgment -
overpricing is a common mistake that can cost you in the end.
With that in mind, here are some reliable guides to use when
pricing your home, all of which come recommended by REALTORS® with significant
experience and advanced training in residential sales.
1. Factors Affecting Your Asking Price
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• How quickly you need to sell
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• The amount of competition in your price category and area
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• The availability, flexibility and affordability of financing
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• The sale prices of similar homes sold in your area during the
past six months to one year
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• Your selling costs
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2. Factors That Should not Affect Your Asking Price
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• The original cost of the property - price is determined by
today's market improvements
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• Any investments you've made in
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• The cost to build your home today
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• Emotional attachment
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• The opinions of friends and neighbors
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3. Problems That Can Arise from Overpricing
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• You might help sell similar homes that are priced lower
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• Your home may stay on the market longer
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• You could lose market interest and qualified buyers
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• You might create a negative impression of the property
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• You could lose money as a result of making extra mortgage
payments while incurring taxes, insurance and unplanned maintenance costs
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• You may have to accept less money
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• A potential buyer may face appraisal and financing problems
as result of the inflated price
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A Realtor® Can Help You Price Right
With a mix of real-world
experience and advanced training, a Realtor® has the tools necessary to compute
the fair-market value of your home based on both the marketplace and personal
considerations like your must-sell date. Remember, the right price is the key to
a successful sale. So work with a Realtor® to price your home accurately the
first time.
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