Pricing your home is both an art and a science. Achieving the optimal price is the result of both objective research into comparable sold properties, finding out what sets your home apart from others, and what's happening in the current market.

The right price should:

Attract Buyers who want your home over others on the market

Allow you to earn the most money possible

Help you sell as quickly as possible

The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it's important to remember that, although the price is set by you, the value of the home is determined by the buyer and the current market. You have to separate yourself from the emotional attachment to your home and view it through the eyes of the buyer - overpricing is a common mistake that can cost you in the end.

The Importance of Proper Pricing

-Faster sale and less inconvenience

-Exposure to more buyers, creating more demand

-Generates more advertising/sign calls

-Attracts higher offers

-Means more money for you if the buyer has to negotiate less

-Avoids being "shopworn"

-What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing both resale and new builds in the area.

Common Reasons for Overpricing

-Over-improvement

-Not factoring HOA or CDD fees into monthly cost for buyer

-Comparing it to houses in a different neighborhood with different costs

-Original purchase price too high

-Lack of factual data

-Bargaining room

-Move isn't necessary

-Assessed value

-Emotional attachment

-Opinion of family and neighbors

Dangers of Overpricing

Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical. Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it. Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned and buyers start asking why no one else wanted the house.

A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time. Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high because it won't even come up in the buyers search criteria. Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property. Attracting the wrong buyers. Fewer potentially qualified buyers will respond. You might help sell similar homes that are priced lower than yours. You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

The Role of a Real Estate Agent in Pricing

Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes so you know your current competition.

There is no "exact price" for real estate

The market determines value…together, you and I, determine the price we list it for.

You determine the price based on the factors you control:    

- Marketing time    

- Financing alternatives provided    

- Condition    

- Exposure method

I keep in touch with market trends and keep up to date with market activity of comparable homes. I will tell you what is going under contract, what is selling, and which homes are sitting on the market. I will help you estimate your net proceeds and determine if offering incentives or concessions will attract the right buyer.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.