By Stephen McCarthy
The 1st step in setting the asking price is understanding the value of your property. There are several websites that will give you an estimate of value without seeing your property. I think they can be a very good resource.
But the online valuations are just a start. A good real estate agent will be able to visit the property in person and then explain whether the online valuations are accurate or off the mark. More importantly they will be able to articulate the market value of your property in relation to the current market. Are properties like yours in demand? Are buyers active? Is your property in market ready condition? Etc.
Pricing is more art than science. When I talk with home sellers I provide a range of values. A price if you want offers NOW. Where I see the current market value and the very highest price that might be within reason.
As the property owner you need to get an accurate & objective look at the market to see how your property lines up. Take the emotion out of the decision and imagine if you were buying a new home how much you might be willing to pay. Call that number the Market Value. If you ask for a premium over the Market Value you might get rewarded. But be ready to wait longer for a buyer and be prepared to make a price reduction if you do not get what you want. Pricing at or below Market Value will typically lead to a faster closing and more reliable transaction.
Ideally you want buyers to be motivated to take action when you market your property for sale. Too high and they go to the next option. Too low and you might be losing money. You do not want buyers to lose interest because the price is unrealistic. Before you go to market, know your personal objectives and what is happening in the current market.
Maybe you want or need to move quickly. Set your price at the low end of the price range. Are you patient and do not have any time constraints? Maybe you price towards the high end of the range.
Whatever your plans to Sell it is worthwhile to interview a capable real estate agent that you trust and who understands current market trends.
