Ten Things To Keep In Mind When Pricing Your Home

I prepared these pricing thoughts for you because I don’t want there to be any obstacles between you and your goals.  My job is to help you to be aware of potential pitfalls and help you avoid them.

1. YOU set the asking price, you and the BUYER sets the purchase price.
2. An agent has control over the marketing plan, not the market.
3. Select on agent by their ability to effectively market your home, not their fee.
4. The current market trends are crucial to setting your price.  Make sure the agent you select knows and understands the current market and the expected trends.
5. Your property is represented by the following four components:
   1. Cost - What your original cost was plus improvements made.
   2. Price - What you are asking for your property.
   3. Value - What a buyer is willing to pay for your property.
   4. Market Value - The price a willing buyer and you agree upon.
6. Regression and Progression:
   

   Regression - an expensive home brings a lower price due to lower priced homes around it.

   Progression - a less expensive home going for a higher price due to more expensive homes around it.
   

7. The first impression your home makes when it goes on the market is crucial.  A lasting impression on agents and buyers will be made within the first few weeks of the listing. 
8. The temptation to overprice can be attributed to the following:
   
   1. Over-improvement - You cannot expect a buyer to pay for features that were added for you to enjoy and enhance your lifestyle.
   2. Need - the need for a certain amount of cash out of the sale of your home does not increase your home’s value.
   3. If your purchase price was high, that does not mean that, you in turn, will also receive a high price.
   4. Lack of factual comparables - Be sure that your agent supplies you with a factual and realistic set of comps to set the price of your home with.
   5. Don’t “add in” bargaining room that is unreasonable.
   6. Don’t price your home high, just because a move on your part isn’t necessary.
9. An improvement in your home will not necessarily bring the same amount back to you in terms of the sale price of your home (see attached).
10. Benefits to Proper Pricing:
    1. Faster sale which will save you money in the long run.
    2. Less inconvenience.
    3. Exposure to more serious buyers.
    4. Increased showings by agents who recognize a properly priced property.
    5. Better response to advertising and agent sales calls.
    6. Attracts offers closer to your asking price.
    7. More money in your pocket.