Latest Articles

2011-11-14 18:50:44

How to Price a House to Sell

You want to sell, so you may be wondering <a href="" target="_blank">how to price your home</a> for sale.

According to the National Association of REALTORS®, in 2010 FSBO sales accounted for 9% of the home sales.  It was noted that the most difficult task for FSBO sellers was getting the right price on their homes. So how do you make sure you price your home right?

First of all, today’s residential real estate market is no place to look for an easy profit, as you may be aware!  You ultimately have to be realistic about your home’s value and price it accordingly.  A good place to start would be determining your property’s fair market value.  What’s that?

Simply put, the fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase.  The fair market value is typically not the same as the asking price.

To get an estimate on your home’s fair market value, you’ll need to know what other comparable homes have sold for recently. If you don’t know where to find that information, you could call a local real estate broker and request a Competitive Market Analysis (CMA) of your house.  Most brokers will provide CMA’s free of any charge and without obligation.  This analysis will give you a realistic figure based on the most salient points of your local real estate market and will provide information regarding recent sales of homes similar to yours, including their sale price and how long it took for them to sell. This would help you to find out <a href="" target="_blank">how much your house is worth</a> and will prove very helpful in determining the right asking price.

As mentioned earlier, the fair market value is not typically the same as the asking price.  You may be wondering, what’s the difference?  Well you can assume that there will be some negotiation with the buyer to reach a sale price. So your asking price would be slightly higher than the fair market value, as most buyers end up paying less than your asking price. 

Since you know that buyers are going to want to negotiate with you on the price, how flexible should you be with the asking price?   Most buyers also leave room for negotiation when they make an offer.  So both the buyer and the seller will need to be flexible to a certain extent.  Ultimately, it’s up to you to choose to accept or reject an offer or make a good counter offer.  If you aren’t using a real estate professional to help you make informed responses to the buyer, just maintaining a cool and rational frame of mind will help you to net a significantly higher price than if you were to be hasty in your decision making. 

Check out our other articles for more helpful advice about listing and <a href="" target="_blank">selling real estate</a>!


<a href="" target="_blank">Homes for Sale by Owners</a>

Related Post

Industry, Education

Negotiating Tip 114: Retreat Negotiations

March 29, 2019

Industry, Education

Negotiating Tip 113: Activating Our Opponent

March 28, 2019

Industry, Education

Negotiating Tip 112: Misconceptions

March 27, 2019

2021 Real Town The Real Estate Network