Pricing your home to sell

In todays market, selling your house for its maximum value can be tricky. There is a fine line between setting a high price which provides you with some bargaining room and one that scares off potential buyers. Obviously, a competitively-priced home will attract more buyers but will inevitably reduce your final profit. Thus you need to think carefully about your bottom line beforehand, that is, how far you are willing to lower your asking price once an offer is received.

There are many ways to help you set your price more effectively in the market, the first of which is to study similar homes in your area. Unless you live in a very sparsely inhabited area, you should consider your area to be any homes within a half mile radius.

By doing your homework on local sales, you will able to get a better idea of the true market value of your home. You first need to distinguish between past sales and active listings, as active listings that have been on the market for a significant period of time have not sold for a reason. More often than not, this reason is because they are over-priced. To get an even better indicator, you should find records of pending sales as these are more current than 'recently' completed sales which may in fact have been agreed on months before and are likely to be out-of-sync with the market.

Another mistake people make is overpricing because they feel they have the benefit of time and can 'wait' for the offer closest to their asking price. This tactic will only succeed in an appreciating market, whereas in a stable or declining market, buyers will steer clear or playing the waiting game themselves. Again, keeping an eye on market movements will allow you to make quick adjustments to your asking price to take account of market trends. Doing so may earn you a valuable head-start on competing homes in your area.

Finally, you need to be able to view your property critically in the eyes of a buyer. Although you may have lived there and come to love it as your home, you need to see all the possible negatives and either invest money into improving them if possible, or take them into account and adjust your asking price accordingly. Following these suggestions will help you sell your home quickly for the right price.