Pricing Your Property

Selling a home creates a relationship between seller and buyer - and the glue that binds them is the asking price. It's essential, therefore, to make sure the asking price is acceptable to both parties.

Pricing a home requires a bit of footwork. First you'll need to compare your home to similar properties in the market - this will give you an idea of a reasonable asking price. Your agent will provide you with a comparative market analysis (CMA) report, an in-depth study of your home's value, and will track current market movements as they relate to the sale of your home. After wading through this seemingly daunting amount of information, you'll be able to establish a range of value and will feel more confident formulating an educated opinion.

But, of course, the buyer making the offer holds the most important opinion. To get a better understanding of what he or she might want, try putting yourself in his or her shoes and ask yourself some simple questions.

  • What, for example, are the other properties for sale in the area?
  • How do those values compare with those of your home?
  • How long have those properties been on the market?
  • What properties sold recently, and what did they sell for?
  • Also, what properties did not sell - and why?
Real estate agents will advise their clients to sell their home as quickly as possible. The longer a house sits on the market, the less money it will yield. This means that there's less of a risk in pricing your home below competition than pricing it too high. A home priced below competition will generate multiple offers that will drive up the price to market value, but an overpriced home will sit on the market indefinitely.

Pricing your home smartly is as important as choosing the right agent. So make sure to take your time and weigh all your options before making decisions - it could earn you thousands of dollars more than you expected.

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