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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. And it's important to
remember
that,
although the price is set by you, the value of the home is
determined by the
buyer.
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 the Council of Residential
Specialists -
a
select group of 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 marketimprovements
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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
Certified Residential Specialist Can Help You Price Right
With
a mix of real-world experience and advanced training, a
Certified
Residential Specialist 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 Certified Residential Specialist
to price
your
home accurately the first time.
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