House Pricing ... Get It Right!

When house pricing or setting the price for your home, it's important to remember that the vast majority of homes sell within a few percentage points of the listing price.

You and your real estate agent should do a thorough real estate market analysis by researching the market before coming up with the right list price.

First of all you must determine what's currently for sale in the same price range. If your property is the only home offered in your price range, or if it is clearly superior to similarly priced homes, you have more leverage to ask for a top end price.

On the other hand, if there are several comparable homes for sale, that a homebuyer might consider placing an offer on one of them, you need to adjust your house pricing wisely in order to compete.

Your real estate agent can help by first researching the list price of other homes for sale in your area with similar features. Your agent may even decide to tour some of these homes to see how they show in comparison to yours. In knowing your competition, you've won half the battle.

Next, your real estate agent can show you past sales and expired listings.
This will show you what prices the market will and will not bear. Also, take note of when this activity occurred.

If the market has changed dramatically in recent months ... either heating up or slowing down, you may have to adjust your house pricing accordingly to take these current market conditions into consideration. Your Realtor® is the expert here, and can help you evaluate your market.

How does a homeseller know whether their house is listed too high?

Of course, a good agent will let you know. But sometimes a real estate agent may be hesitant to tell you. (Are you so protective of the asking price that objective dialog would appear slanderous?)

Signals That Indicate Your House Pricing Is Too High:

The most obvious indication is when there's no action on your house:
no calls ... no showings and ... no offers!

However, there's another situation that may indicate that your house is overpriced. This happens when agents from other companies show your house to potential buyers on a frequent basis, yet no offers are ever received.

Why should these agents be so anxious to show off your house again and again if no offers result? Well, the answer to that question is really quite simple. They may have their own listings of similar houses that are listed at a price below yours. After showing your home, they then take the buyers through their listings where the house pricing was more reasonably set. In comparison to your house, their listing looks like a bargain!

So watch for salespeople who continually show your property without bringing you an offer. Chances are they're selling their own listing from your house! If you think this may be happening, ask your real estate agent for their expert advice.

Remember, as a homeseller, you are in competition with other comparable listings for potential buyers. Try to put aside your emotions to your property, and work the numbers objectively to price it right!