The Secret to Pricing Your Home to Sell

Reprinted from GE Credit Union's Real Estate Views

Contrary to popular belief, when selling your home, its value is determined by one thing and one thing only - what a qualified buyer is willing to pay for it. A home without a buyer has no value in the marketplace.

Here is the secret to pricing your home to sell: it's not what you think the home is worth that matters; it's what a reasonable buyer will think your home is worth that will ultimately  determine if your home will sell. If you left it up to the buyer, however, they would pay you as little as possible. But, you have no obligation to sell your home at that price. To purchase your home, the buyer will have to make you an offer you can't, or won't, refuse.

But, here is how many sellers fall into a trap. Sellers believe that they can hold out for an inflated price and eventually the market will come to them. The buyer, however, just like you, the seller, is under no obligation - they don't have to buy any particular home. No amount of marketing will motivate a buyer to purchase an overpriced home. This reveals one of the most important considerations in pricing your home - price versus time.

Price Versus Time

This boils down to your need to sell within a set time frame or instead to hold out for the best possible price. If you would like to sell for top dollar, be prepared to potentially wait longer for a buyer willing to pay a premium price.

On the flip side, if you need to sell quickly, expect to discount your asking price somewhat because of the limited time you have to expose your home to the market. Ask yourself, what is your highest priority - selling quickly at a lower price or leaving your house on the market longer to possibly sell at a higher price? 

Accurate Pricing

Ultimately, your asking price will, in large part, determine your selling time. To accurately price your home, you need to think like the buyer and look at your home through the buyer's eyes. Do you over-value things in your home that a buyer may not? Remember, if you're holding out for a high offer, someone in a similar home in the same neighborhood may have their home priced much lower to sell before your home. It's important to do your research.

An easy tool for accurately pricing your home is a Comparative Market Analysis. This is a report that can compare your home with other homes in your specific neighborhood that have recently sold. This analysis is then used to provide an anticipated sales price or price range for your home. Although it is not a formal appraisal, the report provides a similar function by giving sellers and buyers a clear understanding of the market data that might affect their opinion of the home's value.

Real Estate Services provided by the Home Information Network, Inc.

For more information on your home's value in today's market, contact Roger Morris at (513) 325-1056.