Pricing your home is not a heads or tails proposition nor can you just pick a number out of the air! You must do your homework and PRICE IT RIGHT. You can depend on your agent to do a CMA (comparative market analysis) to compare your homes to others like it in your neighborhood. This is a FREE service offered by most agents and is an invaluable tool to help you with your pricing.
The CMA will research listing prices in the current market. Most buyers, if not all, are influenced by the listing price. How you set your price will greatly determine the number of interested buyers your house will attract. Buyers are comparing your home to others in the market and to others that have been sold. You need to do your homework by comparing other listing prices and recent selling prices within your neighborhood and other surrounding ones before setting your price. The current real estate market dictates what buyers are willing to pay.
Pricing your home properly is the most important step in the selling process......
The listing price contributes greatly to the number of interested parties and offers you will receive.
Ultimately, it is up to you to set the listing price. Take into account your agent’s advice, the current market situation, and recent sale prices before deciding upon your listing price. Also, know what your bottom price is. This will help you set a listing price that allows room for negotiation. But keep in mind that your bottom price should not be set in stone. During negotiation, you may find that what you might lose in dollars will be made up in other areas.
It is important that you set your listing price at market value. Even a few thousand dollars above market value can influence how long your house will sit on the market, especially during a cold or normal market.
Remember, you are listing your house so that you can sell it. It is better to have multiple buyers interested in your property at a market value price than few or no buyers interested in your overpriced property.
The more buyers who are interested, the hotter your property becomes. And this can motivate buyers to make offers on your house.
The consequences of not pricing your house right are:
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Pricing Your Home