Price Your Home Right

The price tag on your home is the leading factor governing whether or not your home sells and how long it takes to do so. Review the following suggestions to learn more about how to determine the right price and give your home the best chance of selling in today's market.

Worth is in the Eye of the Buyer: Your home will sell at the price the buyer is willing to pay and you are willing to accept. However, this price is not determined by what you, your agent, or your friends think the home is worth, but rather by the buyer who decides to make an offer.
Price It Right from the Start: Your newly listed home will get the most exposure to potential buyers within the first few days on the market. After the first few weeks, interest begins to decrease. Don't waste those valuable first days by marketing your home at an unreasonable price.
Pricing to Low: Don't worry too much about pricing your home too low. Homes that are priced low are usually recognized instantly by prospective buyers as a "good deal" and home seekers will jump on them. If you've priced too low, you will likely have multiple offers on the property, and buyer competition will bid the price up to actual market value.
Accurate Comparables are Key: Knowing your competition and what similar homes are selling for in the market is essential to determining the right price for your home. The best way to get good information about the market is to enlist a good real estate agent. Real estate agents have access to a great deal of data on active listings as well as sold, pending, and withdrawn listings. A good agent can put together a very comprehensive report on the market in your area and give you a good indicator of the market value of your home.
Time on the Market Costs: If your home is overpriced, it will likely sit on the market for a long time. Time on the market costs you financially in extra mortgage payments paid, in effort to keep your house clean and show-ready, and in the possible loss of a home you would have liked to buy but that sold before you could sell yours and move forward. Most importantly, time on the market can cost you potential buyers. A listing that sits on the market without selling becomes stale and buyers start to wonder if there is more wrong with the property than just the price.
Competing with REO's & Short Sales: When deciding on a competitive price, you need to consider the types of sales that are influencing current market prices. If your home is in an area that has a high number of foreclosure, REOs or short sales, it will have a downward impact on the market price of your home.
Buyers Won't Offer on Overpriced Homes: Some sellers say, "I know it's priced high, but we can negotiate down if we get an offer." Bad idea. You may never get the chance to negotiate because few overpriced properties ever actually receive offers. Buyers are deterred from homes with unrealistic price tags for the following reasons: (1) they don't want to insult the seller by making an offer that is much lower than the asking price, (2) they believe the seller knows it's overpriced but isn't willing or able to accept a lower offer, or (3) they never see the listing because the inflated price tag puts it out of the range of home prices they are looking in.

There are no hard and fast rules to selecting the perfect price for your home, but between these tips, a good picture of the market, and advice from an experienced agent, you should be able to make an appropriate educated decision...the market will determine the rest.

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