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 buyers

• Allow you to earn the most money possible

• Help you sell quickly within the sellers ideal timeframe.

The simple fact is price is the number one factor that most homebuyers use to determine which homes they want to view. And it's important to remember that, although the price is set by you, the value of the home is determined by the buyer. What the buyer is willing to pay and how much they deem your property is worth. Although it is hard, do not let your feelings or sentimental value escalate the listing price-- overpricing is a common mistake that can cost the seller in the end.

The Importance of Proper Pricing

• Faster sale and less inconvenience

• Exposure to the right buyers

• Increases Realtors® response.

• Generates more advertising/sign calls

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 and so will their agents.

Common Reasons for Overpricing

• Lack of factual data

• Bargaining room

• Move isn't necessary

• Emotional attachment

• Opinion of family and neighbors

Dangers of Overpricing

• Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.

• Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it.

• A major cause for concern is appraisal problems; overpricing can lead to loan rejections

• Fewer potentially qualified buyers will respond.

The Role of a Real Estate Agent in Pricing

• Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.

• We don't tell you what we think your home is "worth".

• The market determines value…together we determine the price.

• You determine the price based on the factors you control: - Marketing time - Financing alternatives provided - Condition - Exposure method

• Keep in touch with market trends and keep up to date with market activity of comparable homes.

• Estimate your net proceeds.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.

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