Pricing Your Home

Figuring the Value
As a seller, it is challenging to be realistic about your home's value because of the pride and emotional attachment you have to the home. Many sellers think that your house is better than everyone else's, and should be priced accordingly. Your asking price needs to be based upon an objective assessment of what comparable homes sold for in your neighborhood. Find out the value of your home by requesting a free market appraisal.

Making the Decision
You may think your home is better than your neighbor's home that sold for $200,000 a few months ago because your home has a new furnace, new roof, finished basement, and pool. But, if your neighbor's home had a first floor family room and your home does not, your home will probably sell for less. In most neighborhoods, if your home is has been on the market for more than a month, then your home may be overpriced.

Common Mistakes to Avoid
Many people have misconceptions that hurt their home's ability to sell. The most common misconception is that a seller should start out with a high price, then reduce the price if no one puts in an offer. This strategy is a mistake, because your home receives nearly all of its attention in the first two weeks after it goes for sale. After that time period, it is considered overpriced and buyers ask "why has it been on the market so long--what is wrong with it?" Reducing the price often goes unnoticed by buyers . As a result, the home sits on the market for a longer time period, and the seller receives a lower price than they could have had if they priced it appropriately in the beginning.