Get the Highest Price for a Home

Price is often the first and final point of consideration for a potential buyer. Just like great curb appeal price is often the first impression a buyer gets when investigating your property. Setting the price correctly will greatly determine how quickly and how easily the house will sell.

Pricing the home correctly is critical. Setting the price too high will likely have the property sitting on the market too long and pricing it too low leaves money on the table. You can get a general idea by tracking the prices of other homes that have sold in your neighborhood. The simple data gathered regarding these homes is not enough to make an educated decision, however. Work with your agent to find the other critical data needed to set the price. You will establish a strategy to get the home sold for the price that's right.

A Great Strategy Is Based on Great Information

To get started you can do some research on your own. Learn what homes around you are selling for. Venture into various neighborhoods in the area to get a good feel. Keep in mind that there are many other factors in pricing your home correctly.

Your home will be compared to all the homes based on many factors including size, age, features, rooms, etc. Remember back to when you found your home. You, along with your agent, compared multiple homes in multiple areas. A potential buyer for your property will do the same.

Setting the Asking Price

Your information regarding the area and your motivation to sell will both affect how the home is priced. How is your home priced?

1. Clearly Overpriced:
   Sellers want to get the most possible money out of their home. Many agents win listings because they promise the most amount of money. They overprice the home to get a contract and then when the house doesn't sell they talk the owner down to market value and it sells. If a house is 10+% over market value it is going to sit.
   
   The market isn't fooled. They want to pay the least amount for a house so they are doing their research too. Your house will begin to age and become stale. The listing will likely expire and you will have to start over from scratch.

2. Somewhat Overpriced:
   When the decision is made emotionally you believe that the home is worth more than all the other homes. A buyer will only pay what it is worth regardless of your emotional ties to it. If you are 5-10% over your house is likely going to sit and may or may not get shown. You will end up spending a lot of time, effort, and frustration as it sits without much activity.

3. Priced Correctly at Market Value
   Supply and Demand drive your house's sale. If you price it right you will place within the market value range but just on the high end of what it is really worth. It will get get shown and you will end up with a price right at what the home is worth. The home will sell quickly and at the right price.

4. Priced Below the Fair Market Value
   If you need to get out of a property you may consider pricing it below market value. It will likely get shown quickly and you will likely get asking price or close to it.

Remember, the buyer wants to pay market value or less. Price the home right so that the purchase is made at the high end of market value so buyers believe they get what they want and you get your house sold.

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.