Pricing Your Home to Sell
Pricing your home is both an art and a science. Achieving the optimal price is the result both of objective research into comparable properties and a gut feeling about your property and the current market. The right price should:
Attract buyers
Allow you to earn the most money possible
Help you sell as quickly as possible.
The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it’s important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment -- overpricing is a common mistake that can cost you in the end.
With that in mind, here are some reliable guides to use when pricing your home:
Factors Affecting Your Asking Price
How quickly you need to sell
The amount of competition in your price category and area
The availability, flexibility and affordability of financing
The sale prices of similar homes sold in your area during the past six months to one year.
Factors That Should Not Affect Your Asking Price
The original cost of the property -- price is determined by today’s market
Any investments you’ve made in improvements
The cost to build your home today
Emotional attachment
The opinions of friends and neighbors.
Problems That Can Arise from Overpricing
You might help sell similar homes that are priced lower
Your home may stay on the market longer
You could lose market interest and qualified buyers
You might create a negative impression of the property
You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs
You may have to accept less money
A potential buyer may face appraisal and financing problems as a result of the inflated price.
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