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Home Seller – Deciding on a Price

Posted by Chris on December 19, 2009
Value Your Homes

It’s not uncommon for first-time sellers to lose sleep over choosing the best selling price. Even experienced sellers struggle to find the right spot in the market, but it doesn’t have to be a daunting task if you keep these pricing guidelines close at hand.

  • Have at least two recent appraisals. It’s always best to have a second opinion when it comes to appraisals. Keep in mind, however, that appraisals are an estimated value, not what someone is willing to pay. That said ….
  • Know the market in your area. Appraisals mean nothing if they don’t reflect the current market. Shop around as if you were a buyer, attend open houses, check real estate guides, and price your home accordingly.
  • Don’t price above the market with the idea of dropping down low. The current real estate market is a buyer’s heaven, so going with the old tactic of starting high then “making a sweet deal” by dropping down to the home’s actual value will `leave you high and dry. With an abundance of reasonably priced homes already in the market to choose from, you’ll likely never even get a chance to offer that sweet deal to a buyer.
  • Check prices on homes that have recently closed. This is the best possible pricing information available, because it reflects actual selling prices as opposed to asking prices. Most real estate agents are happy to offer up such information, even if you’re selling on your own.
  • Consider your motivation: Good things come to those who wait, so if you can afford some time, starting out at the high end of the market may work to your advantage. If the sale needs to happen yesterday, however, plan to lowball right from the beginning. In this competitive market, it’s the only way to garner the attention needed for a quick sale.

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