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How to Price Your Home Effectively

Pricing your home is both an art and a science. Achieving the optimal price is the result of both objective research into comparable properties and an honest evaluation of your property and the current market. A professional real estate agent will bring a custom strategic plan and the priceless experience of successfully selling homes in the area.

The Right Price Should:

  • Attract buyers
  • Allow you to earn the most money possible
  • Help you sell quickly

Price is the number one factor that most home buyers use to determine which homes they want to view. It's important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you in the end.

The Importance of Accurate Pricing

  • Faster sale and less inconvenience
  • Exposure to more buyers
  • Increases Realtors response
  • Generates more advertising
  • Attracts higher offers
  • Means more money to the seller

What really matters is how your home stacks up against the others currently for sale and those that have recently sold in your neighborhood. Buyers will be comparing those prices to your home! View your home's estimated worth by using our Home Valuation Tool!

Dangers of Overpricing

Buyers are waiting for the ‘right house’ and will move quickly if it is priced correctly. When overpricing your home, you could miss out on a crowd of qualified buyers who are looking for exactly what your home can offer!

  • Beginning with a high price assuming that you can reduce it later will cripple your opportunity to sell for the correct market price.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
  • 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 qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You’re actually losing out on the money your home is worth!

The Role of a Real Estate Agent in Pricing

Your real estate agent should be not only an expert in the current trends but also the local market. By having an experienced agent guide you through the home pricing process, you’ll be able to set an accurate price for your home that will attract buyers immediately.

  • 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 to know your competition.
  • There is no "exact price" for real estate.
  • An agent shouldn't tell you what they think your home is "worth".
  • The market determines value while your agent will assist you in determining the price.
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.
  • Help to determine offering incentives.

You Determine the Price Based on the Factors You Control

  • Marketing time
  • Financing alternatives provided
  • Condition of the home
  • Exposure methods

An agent has NO control over the market, only the marketing plan. Be careful to never select an agent based on price.

Educate Yourself on Your Local Market

You have to educate yourself about your market and be realistic about the sale of your home. Sellers need to understand the current real estate market, because housing is a commodity, and the value of real estate properties fluctuates according to many factors including supply and demand, interest rates, and the current economic climate.

There is no substitute for a professional real estate representative when it comes to local market knowledge, and at Jeff Cook Real Estate we recommend that our clients start to visit open houses on weekends and see properties on the market. This is a great way to further your knowledge, especially if you are also planning to buy a home!