how to price the homePricing Your Home

Pricing your home is both an art and a science. In order to get the most out of your home, objective research into comparable properties and a gut feeling about your property and an understanding of the current market are key. We take many factors into consideration when pricing your home - not just what your neighbors have sold for or what is on the current market.

The right price should:

  • Get the attention of potential buyers
  • Grant you the best possible sale
  • Sell your home as quick as possible

Price determines whether a possible buyer wants to view the house or not. It is important to remember although you set the price of the home - the buyer sets the value. Over pricing your home out of excitement could cost you in the end. Set a reasonable price with reasonable standards to attract serious buyers.

The Importance of Proper Pricing

  • Faster Sales and serious inquiries
  • Expands listing to wider variety of buyers
  • More likely to have a realtor respond
  • Attractive Listings on the market generate better sales!
  • Means more money to seller
  • Avoids being "shopworn"

What is most important is the appeal that your home has compared to other homes on the market.

Common Reasons for Overpricing

  • Expensive remodel
  • Necessity
  • Higher-end areas
  • Original Value
  • Lack of Background knowledge
  • Room to negotiate
  • Seller is not in a rush to leave the home
  • Market Value of the home
  • Emotional attachment
  • Opinion of family and friends

Dangers of Overpricing

  • Most of the activity on your home will occur in the first few weeks. Pricing a home reasonably will attract buyers fast.
  • Buyers looking for a house have usually seen a variety of homes but are looking for their perfect dream home. Finding it at the right price is what matters most.
  • Starting at a high price in hopes to lower it in the future cold hurt you because it will cause buyers to lose interest as soon as they see a price.
  • Major concern is appraisal problems. Over pricing could cause rejection when applying for loans and end up being a waste of your time.
  • Just because your house is nicer than the ones around you doesn’t mean it has to be the most expensive. Over pricing will lose viewings of the property.
  • Buyers and agents become aware of the long exposure period and become hesitant to make an offer because they think something could be wrong with the property.
  • Over pricing could cause you to encounter the “wrong kind of buyers.”
  • Fewer qualified applicants will be interested in the property.
  • Pricing your home too high, could cause lesser valued homes to become more popular.
  • You could lose money making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

The Role of a Real Estate Agent in Pricing

  • Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is comparing previously sold homes in the area, and currently active homes to view your competition.
  • There is no “Set” or “Exact” price in Real Estate
  • We don’t tell you what your home Is “worth” we will tell you what it should be priced at.
  • The market determines value…together we determine the price.
  • You determine the price based on the factors you control:
        - Marketing time 
        - Financing alternatives provided 
        - Condition 
        - Exposure method
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.
  • Help to determine incentive to sell the property

Agents have NO control over the market, only the marketing plan. 


Let's Talk About Pricing Your Home!

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