Be Careful Pricing your Home

by : Jim Hirschman

The pricing of a home can be one of the single most important aspects of a home sale. The price tag that you put on your home has the power to attract or repel buyers quite easily. The last thing you want to hear is the phrase "X dollars, for that place? Seriously?" Homes that are incorrectly priced have a tendency to not sell, quickly or at all for that matter.This is because they have priced their target market out of the bidding. What you are trying to achieve here is what is known as "fair market value." Fair market value means that your home for sale is priced reasonably, for quick sale and that the asking price should draw buyers in.

The pricing of a home is usually seen to by a realtor for a variety of reasons. Primarily, they have access to the MLS database, a vast repository of listed homes and information on listed and sold homes in every area across the country. This allows them to make comparisons of your home against similar homes in your area based on things like rooms, bathrooms, yards, location and amenities. If your home gets priced too high for the neighborhood, then the sale could be problematic. if buyers can't look at your listing and think; "Wow! What a deal!" The sale may take a bit longer than you expected.

This is why correct pricing is so important. One good idea is to have the pricing on your home done several times over to ensure that the price you have is right. If you have numerous realtors do a CMA on your home and they come back with vastly different prices then take the time to sit down with each and ask why they priced your home in the way they did. Perhaps their answers will give you some better insight into the sale of your home. In the best-case scenario you will be able to price your home around the top of it's price group, thereby attracting a wide array of prospective buyers, including bargain shoppers from higher price groups. Don't discount any buyers no matter what, they could be the ones that make the nice offer!