Setting a Price

Setting a Price

Pricing is one of the most crucial aspects of your marketing
effort. The figure your choose must reflect the various
attributes of your home, the state of the market, and your
need or desire for a fast sale.

Deciding on the right price isn't easy. Set too high a price and
your home may languish on the market - too low and you may
get thousands less than you could have.

Work with Your Agent

Your agent is in the market every day - no one can offer you a
better view of pricing and sales activity. Once your agent is
familiar with your home and its features, he or she can prepare
a comparative market analysis and propose a listing price.
Seriously consider this pricing, but don't be hesitant to
disagree or suggest another figure - just try to be realistic.

Consider Market Conditions

Real estate markets are highly cyclical. While home prices have
typically risen over extended periods of time, the road is
sometimes a bumpy one. The price you will get for your home -
and the time it will take to get it - depend to a great extent on
the overall state of the market. Our guide to evaluating real
estate markets can help you figure out how to proceed.

Be Objective About Your House

It's important to be objective about your home when setting
pricing. Remember, it's really not relevant what you paid or
how much you love the property - the important consideration
is what the market will bear at this time.

How Quickly Do You Need to Sell?

Setting real estate prices is not an exact science. A low asking
price may generate a fast sale, while a bit of patience - and a
higher listing price - may allow you to net a larger figure. It's
important to be honest with yourself about your needs when
setting a price. Our quick sale checklist can help you decide if
it makes sense to accept a bit less in return for a faster sale.

Is Your Home Overbuilt?

Generally, nicer homes yield higher sales prices. This
relationship begins to diverge a bit, however, near the top of
the market. Overbuilt homes rarely sell for the prices it appears
that they should. Buyers in the price range of the overbuilt
home are generally interested in more upscale communities,
while the typical buyer for the area cannot afford to pay a
significantly higher price. If your home is overbuilt you may
have to accept the fact that you won't be able to get the
price you think you should.