How to Set a List Price for Your House 

Price is the most common reason for the lack of a sale. Rule of thumb - the correct selling price is the highest price the market will bear. Be realistic, not emotional, about the value of your property.  

Unfortunately, depending on current conditions, what you paid for your home and how much you have spent on it is often irrelevant to the price you can sell it for.

Keep in mind that market conditions change. Homes will sell, additional homes will come on the market and mortgage rates may move up or down. These factors will all affect the price you can ask for your home! That is why staying up-to-date on the market conditions is so important! 

As Your Agent, I will assist you in determining the optimal listing price for your home by analyzing the recent sales and current listings within your geographical area. I will also provide you with an updated Comparative Market Analysis (CMA) and Market Report every month so that we can make sure that your list price is competitive with the other homes as the market changes.

 

WHAT HAPPENS IF I OVERPRICE MY PROPERTY?

  • Many potential buyers won’t look at your property because they assume it is out of their price range.
  • Comparison shoppers will be encouraged to bid on another property. In essence, you are helping to market someone else’s properly priced home.
  • Properties left on the market for extended periods of time become shopworn.
  • Buyers assume that something is wrong with the property.
  • Agents are less likely to show your property to their buyers.

HOW QUICKLY CAN I SELL MY PROPERTY?

The length of time your property is on the market is directly related to the selling price. If a home is not selling, the marketplace is saying the property is not priced properly. To obtain proper market exposure, it is an absolute necessity to be competitive in price, terms, and condition with similar properties so yours will sell faster.

 

TOP REASONS TO PRICE YOUR HOME RIGHT FROM THE START

  1. Serious buyers look in the price range determined by their down payment and monthly payment ability. Unless your property is priced correctly, the down payment and monthly payment requirements will not be competitive.
  2. A buyer who is seriously looking will soon become very knowledgeable in his or her price range. An unreasonable asking price only discourages the buyer from looking at and considering your property.
  3. Buyers purchase by comparison and a property that is priced above the competition does not compare favorably. Inviting a buyer to make an offer can indicate that a fair price has not been established.
  4. If you plan to adjust your price at the time of sale, it is better to adjust the price now and attract serious buyers from the beginning. This often places you in the favorable position of having more than one buyer interested in your property.
  5. It is very difficult to obtain a reasonable offer on an overpriced property. The buyer feels he/she should be just as unreasonable as the seller, and so a very low offer, if any, will be written.
  6. It is a mistake to believe that you will get more for a property by asking more. You usually get less because fewer buyers will consider it when it is placed on the market.