Pricing Your Home

When the time comes to price your home for sale, you may find that it is a more difficult task than you initially anticipated. Pricing is not a step that should be taken lightly or decided upon quickly.

Determining a price for your home should be a careful assessment of property values in your area, the condition the home is in, and the fair market value of property at the time.

There are strategies that you can use that will help you determine a price that is fair for both you and a prospective buyer. Remember that pricing a home is similar to pricing in a store. If your home is over priced it will sit on the market longer. The temptation is often rooted in your own personal opinions of your home. You may want to contact a third party, namely your REALTOR to help you make an objective decision.

The following are just a few strategies that you can utilize when pricing your home. Contact your sales agent for more information or assistance.

Lead with your head not your heart. Your home has probably got some sentimental value. After all, it is where you have lived your life for a long period of time. Perhaps it's your first home with your spouse, or you had your first child there. Remember that buyers do not have the same personal investment and attachment to your home that you do. They want the best value for their money. Keep your opinions objective and listen to outside parties when they give you an honest assessment of your home's value.

Check public records. You can access public record information from your local courthouse or on many websites today. Public record information for your area will give you an idea of what comparable homes are selling for in the market today. Do not base your assessment on what homes are PRICED at, but rather on how much they SOLD for recently.

Assess your home's condition. Walk around your home and determine the kind of shape it is in for its age. You may also want to hire a home inspector to find out what kind of repairs, if any, need to be made. This will also help you handle any situations that come up during the negotiation phase of your contract if there are no 'surprise' repairs.

Determine your personal goals and objectives for your home sale. Decide what you want to get for the home and work backward. If your goal is to sell the home fast, you may want to price your home slightly below the competition. Keep in mind that buyer activity peaks during the first 30-45 on the market. If you want to get the best price, price your home competitively and remain flexible.

Obtain a CMA from a professional. Many agents offer free CMA's. Have a couple of CMA's done on your home to determine an average of what your home could sell for based on their results.

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