Steps to pricing your home to sell in a Buyer's Market

March 19, 2008
Category: News

Selling your home in a Buyer’s Market.

Pricing your home to sell is the key to getting the best price and the most proceeds from the sale! 

Getting Started

Setting the list price for your home involves evaluating various market conditions and financial factors. During this phase of the home selling process, your REALTOR® will help you set your list price based on:

  • pricing considerations
  • comparable sales
  • market conditions
  • offering incentives
  • estimated net proceeds

Pricing Considerations – Find a Balance Between Too High and Too Low

When setting a list price for your home, you should be aware of the market demand for your type of home as well as the potential buyer’s frame of mind. Consider the following pricing factors: If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your REALTOR® to "Bring me any offer. Frankly, I’d take less." But compared to other houses for sale, your home simply looks too expensive to be considered. In our current market and the market we face for the next 9 to 12 months you can count on not selling your home if it is over priced! If you price too low, you'll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.  

TIP: Never say "asking" price, which implies you don't expect to get it.

Unfortunately pricing low is a necessity for sellers who have found themselves upside down in thier home. In our current market, if you really have to sell you will have to let go and go with the absolute best selling price you can live with. It may be that you have already taken your profit from your home in the form of a home equity loan. If you have,  know that you may have to come to the table with some cash at closing. The positive side is that realized capital gains will be less if you have most of the equity in your home mortgaged!  Of course you will want to consult your accounting for

 

 

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