Seller Resources: Tips for Pricing Your Home

Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. The value of your three bedroom home is tied to the selling price of other three bedroom homes in your neighborhood. This is true no matter how much you invested in your bathroom or in kitchen cabinets. The trick is to balance the cash you want with the actual value of the property.

Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home.

Optimistic home sellers love to parrot the old adage, "There's a buyer for every home." But they often leave off the qualifier: "at the buyer's price." The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth.

Here are some of the factors to consider in pricing your home:

1) Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?

2) Consider competition. How many other houses are for sale in your area? Are you competing against new homes?

3) Consider your contingencies. Do you have special concerns that would affect the price you'll receive? For example, do you want to be able to move in four months?

4) Get an appraisal or a market analysis performed. Remember, you can request a free market analysis right here on LimaRealEstate.NET.

5) Ask a lender. Since most buyers will need a mortgage, it's important that a home's sale price be in line with a lender's estimate of its value.

6) Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.

7) Know what you'll take. It's critical to know what price you'll accept before beginning a negotiation with a buyer.