Pricing A Home To Sell

Great article orgninally published in the Commercial Appeal.

There are a number of key points to consider when selling property, but perhaps the most important is price.

In determining the list price, you should consider the current market condition (buyers market, sellers market or stable market) and a potential buyer's frame of mind. A buyer will determine which properties to view based on a list of properties that meet his criteria, including price. The list of properties can be compiled by a REALTOR® using MAAR's Multiple Listing Service and a knowledge of the market, or by the buyer searching Internet sites.

Consider the following pricing factors: If you set the price too high, your property might not be picked for viewing, even though it may be much nicer than others. As a seller, you may have told your REALTOR® to "Bring me any offer. Frankly, I'd take less." But your flexibility on price might not show up in a quick search for available properties. Your property could look too expensive to be considered. If you set the price too low, you may short-change yourself. Your property could sell quickly, yes, but most likely a buyer would have paid more given reasonable marketing time and a proper price.

No matter how attractive a property, buyers will compare its price with everything else on the market. Your best guide is a record of what the buying public has been willing to pay in the past few months for a property similar to yours in your area.

Your REALTOR® can furnish comparable sales data ("comps") and analyze the information to determine a suggested listing price. The decision about how much to ask, though, is always yours.

The "comps" prepared by your REALTOR®, along with data about similar properties in your area, are used for a "Comparative Market Analysis (CMA)." To help estimate a possible sale price for your property, the analysis will also include data on nearby properties currently for sale and properties that failed to sell in the past few months, along with their list prices.

Typically, a CMA is probably enough to guide you in setting a proper price. However, a formal written appraisal (which may cost a few hundred dollars) can be useful if you have a unique property, if there hasn't been much activity in your area recently, or if co-owners disagree about price and any other circumstances that make it difficult to put a value on your property.

Selling property is a complicated proposition. You need a professional - someone to answer your questions and guide you through the process. Someone who adheres to a strict code of ethics. So, make sure you're working with a REALTOR®.

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