Guidelines For Pricing Your Home

1. What you paid for your home does not affect it's current value.

2. The amount of cash you need from the sale of your home does not affect it's value.

3. What you want from your home does not affect it's value.

4. What any real estate agency says your home is worth does not affect it's final value.

5. What an appraiser says your home is worth does not determine or affect it's value.

The buyer always determines the actual value!

The value of your home is determined by what a Buyer is willing to pay in today's market based on comparing your home to others that are currently on the market.

Buyers today are more value conscious than ever. They look at many homes in a neighborhood. When they look at your home, their extensive market knowledge and experience tells them quickly whether it is priced correctly. Furthermore, with the widespread use of a buyer's broker, they have access to the information that I will present to you. The buyer's broker will advise them to make offers on which home is the best value. Even the best agent from the best company with the most innovative marketing will not be able to sell a home that is not priced correctly.

Focus on pricing your home correctly. Overpricing a home is the single most harmful factor to significantly lowering your final sales price. Why? Your home will generate the most excitement the first few weeks on the market. When you overprice your home, agents and buyers will use your home to justify the sale of another property correctly priced. No amount of staging and upgrades will overcome a home that is out of its price league. Buyers and agents compare your home to other homes in the market using the "big three " indicators of value: location, price and quality. Pricing right and making fast adjustments in your price if you've missed the target is critical because your property does not have a long "shelf life". Generally speaking, buyers and agents do not have a positive opinion of homes that stay on the market longer than the area average.

"Pricing right" creates excitement, attracts more buyer appointments and always leads to a quicker sale for a higher price. Remember price is a moving target because the market is always changing based on the motivation of the other sellers you are competing against. You can select the right price today, go to bed tonight, and wake up to a property that is now overpriced based on new listings entering the market and sellers who decide to reduce their price. Your real estate professional is always watching price closely and advising you of market changes. Be ready to adjust quickly if the market changes. Staying ahead of the changing market and strategically positioning your price against the competition is the only way to win at the Price is Right Game.