Pricing a Home For Sale

There are a few key steps in properly pricing a home for sale. Sellers should consider finances, a comparative market analysis, as well as the condition and location of the property.  Mix in a little common sense and you can easily determine the asking price.

Selling a home is a financial decision for both the seller and buyer.  More simply, it is a math problem.  Is the seller willing to accept what the buyer is willing to offer? We are still in a buyers market and the first offer received is usually the best.  Sellers may be inclined to turn down the first offer in hopes of receiving a higher one, especially if the offer comes when the home has only been on the market for a few days.  Determining the lowest price that will be accepted for a home will protect a seller from a missed opportunity.  If the first offer comes in at or above the predetermined number, take it!

Second, sellers should carefully review the comparative market analysis (CMA) from their Realtor.  CMA’s will compare homes that are similar to the property being sold.  The report will include recently sold properties as well as homes that are currently on the market.  The homes that are currently on the market are the competition; the closed properties will provide a relative sales value per square foot. 

Third consider the condition of the property being sold. Sellers should visit open houses to compare the condition of competitive homes to the property they are preparing to sell. Is the home freshly painted? Does it have an updated kitchen and bath? Central air? Yes to any will add value.  Are the kitchen and baths original to the home? Is there wallpaper in every room?  Is the roof in need of repair? Yes to any and the value would decrease.

Fourth location. Location will always be the largest factor in real estate. School district, proximity to the Center, the amount of traffic on the street, they all effect the asking and selling price. 

And lastly, common sense.   Sellers should take a realistic view of the home and the current market conditions.  Make a list of all the things that could possibly be considered negative and positive then market the home, or make changes, accordingly. 

Remember, a little common sense never hurt a decision.

Good look and happy selling!

For more information on how to price your home visit http://new.realtor.com/Basics/Sell/SetPrice/Price.asp?source=web

Next week's post will focus on appraisals.

If you have questions or comments please feel free to email Paula at paula.ostop@raveis.com