The list price of a home is the single most important marketing tactic for selling quickly and for the highest sales price possible. Price it right from the beginning. Take advantage of being fresh to the market. Resist the temptation of padding your price in anticipation of a bidding war with a potential buyer. Having your home priced right could make the difference between a quick sale and one that takes months to complete.
The most common way to come up with a price is to use current market statistics for comparable properties. Most real estate agents use the last 3 months of sales for similar properties in the immediate area and determine an average price per square foot. Then multiply the square footage of your home with the average to provide an idea of what price the property would sell. Although this is a useful tool, there are many factors which could sway this number either way, such as the condition of the property. Is it completely renovated? Or is it outdated?
The current market will determine the actual price the house sells. Look at the current houses on the market, and ask yourself, “If I was buying in my neighborhood, which house would I choose? And, how much would I pay for it?” This can be a tough question to answer, because it’s human nature to be emotionally attached to our home. However, if you can eliminate the emotions, this question can make the difference between getting your home sold from the start vs. sitting on the market for months.