Making Sure the Price Is Right

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For most of us, our home is our largest asset and selling it is one of the most important and nerve racking decisions of our life. In today’s volatile market, setting a price that meets your financial needs and attracts buyers isn’t an easy process. Knowing why you are selling, where you are selling and how much you need to make can help clear the fog and lead buyers to your door.

Why have you decided to sell your home? Knowing this helps set the path for the amount of time you have to invest in the sale, the investments you are willing to make to ensure the sale and what you will eventually profit from the sale. Keep in mind; if you have to make a fast exit it is likely you will not meet your financial goals on the home sale. Regardless of your reasoning, keep this information to yourself. Brokers and buyers don’t need to know that you are looking for a quick sale, as this is a bargaining chip for them and a rock and a hard place for you.

The greatest mistake made in real estate is improper pricing. The ever elusive combination for the perfectly priced home is one in which the price is in line with other houses in the area, leaves room for negotiation and yet still produces the highest return to the seller. Realtors can not guarantee their suggested price will make for a sale, but they have a lot more resources and experience in the housing market and it may be in your best interest to hire a professional to help you set your price. This is not an out though. You should definitely meet your broker with a realistic price of your own.

Start doing your homework. When a buyer is looking for a home they are doing plenty of research and comparing tons of homes in a given area. Sellers need to do the same. Shop for a home similar to yours in newspapers and online. Know who your competition is and stay competitive. Get facts from a realtor on recent home sales in the area. Homes priced higher than others in their neighborhood are less likely to be shown to potential buyers.

Expect to negotiate and plan your price to leave room for this concession. It is a simple truth that every one enjoys feeling like they got a “deal”. This reaction from buyers and negotiation can actually benefit the seller if the listing price is set to the right amount. Make sure you leave yourself enough room in which to bargain (in fair market this can range from 5-10%).

We all want to price for the largest return, but this will be dictated by your selling situation. Ideally, the asking price should deliver the highest return in your available time frame with the least inconvenience. There are many market related factors that could affect the sale price for your home, but being realistic and knowing what your home is worth in your neighborhood can provide a great starting point for ensuring the price is right.

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