Pricing a home for sale is as much an art as it is a science. Here are some tips on what you should consider:
Fair market value is the price at which a willing buyer under no compulsion to buy and a willing seller under no compulsion to sell would agree by contract is a fair price for a home. It is an abstract value when a property is listed for sale, but implications can certainly be made as to fair market value based on recent transactions.
In a community of similar homes, why is one worth more than another? The answer is simple.
Every home is different.
Some factors that come into play when determining the value of a home are:
Even when two homes are identical in the same neighborhood, one may be priced higher due to something as simple as the views from the windows, the paint colors, or the overall taste of the viewer.
Sellers often view their homes as special, which can tempt them to put a higher price on their home, believing they can always reduce the price later. This can be a serious mistake because overpricing prevents buyers from ever looking at the home. Most buyers look at homes by price range, and then look for the best value in their price range.
Your best chance of selling your home is early in the marketing process when your home is fresh on the market and an exciting prospect to buyers and their agents. If you don't get many showings or offers, you may have overpriced your home and it is not comparing well to the competition. You can't change the location, so you'll have to continue to wait, improve the home's condition, or lower the price.
The market is not lying to you, but it can change its mind and give your home another chance. By then you may have lost precious time and perhaps allowed a stigma to cloud your home's value.
Intelligent pricing is not about squeezing every last nickel out of that one buyer who falls in love with your home. It is about getting your home sold quickly at fair market value.
Your agent can do a market analysis and give you advice as to where you should price your home. You can also use our site to research comparable properties and sales histories. Together, you can make an informed decision as to how to price your home for sale.