Published On: Fri, Dec 5th, 2014

Strategies For Pricing Your Home To Sell

Selling your home is a task that takes some thought, preparation, and basic knowledge of real estate. As said in the Wall Street Journal, when it comes to residential real estate, the asking price of a home is often as much about psychology as it is about reality. Setting an asking price is really a tactic of negotiation. It can be a delicate balance. Most sellers tend to overestimate their home’s worth, and some agents will set a price that is too high, in order to avoid hard feelings. Other agents may set a high price at the start just to get the seller’s business or, on the other hand, price it too low just for the sake of a quick sale and commission.

photo TaxRebate.org.uk via Flickr

photo TaxRebate.org.uk via Flickr

You may be tempted to list your home at a high price, especially if you live in an area where prices are increasing and buyers are competing for homes. Part of the logic behind doing this is just to see if you can get it sold for what your asking price was. However, it is recommended that you don’t do this, as experienced realtors can tell you that you should price your home appropriately from the beginning, as it’s critical to getting it sold quickly at the best price. As research has shown, overpricing your home and then dropping the price a number of times while it suffers on the market usually leads to selling it at a price much lower than what you should have asked for it in the first place.

How do you price your home correctly? Well many homeowners are inclined to price their home based on what they paid for it, their mortgage balance, or on the profit they seek to make so they can move into another home. But the reality is that your home is only worth what the market will bear. If your home is priced too high, some potential buyers will avoid looking at it altogether, while others will just walk away without giving you an offer.

When it comes to choosing a listing agent, if you’re in the process of interviewing several realtors in order to make your choice, you may be tempted to go with the professional who suggests the highest price for your home. But just like buyers, sellers need to beware. The realtor who gives the best comparative market analysis as well as an explanation of how your property should be priced will be more likely to get your home sold at quicker and for a higher price than someone who only tells you whatever you want to hear. The ideal comparative market analysis includes sales prices for similar homes nearby that sold in the last month or so. Other data that can be used includes how many days homes were on the market at various price points, along with the average difference between the sales prices and list prices on the homes that have been sold.

Guest Author: Lolita Di

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