Pricing Your Home for Sale, the Most Important Thing You Can Do

One of the biggest mistakes that people make when they decide to sell their home is the price. This is also one of the biggest, most important factors in selling a house, because it is what your buyers will see first.

Here are some important tips about setting the price on your home.

Be objective and be realistic. It doesn't matter that you have better nails than your neighbor did. This does not mean you can price your home higher than his, and yes, I have had this happen. Look at your neighbor's homes, or at all the homes in your town if there aren't many houses in your neighborhood. See what has sold that might be similar to what you have. Look at what your competition will be, and what they have to offer that you might not.

Under pricing your home will take money out of your pocket, but overpricing can have the same effect. Overpricing will scare buyers away; they are savvy and have access to all the homes on the market. When they come to see your home, they are comparing it with the others that are out there. They will know that your home is overpriced. In the meantime, while your house sits on the market for a lengthy time, it will become "stale," and people will wonder if there is something wrong with it.

Here is what to look for in comparable homes.

Look for a similar style of house (ranch, cape, colonial) as well as similar amount of land. Condition, year built, number of rooms and gross living area is also used when finding the price of your home.
Recent sales is incredibly important, especially now as we are experiencing a fluctuating market. Don't look back one year, and compare the current sale prices to that time. Try to stick within a 6-month time frame.

There are certain things that will make your house more competitive on the market, but not necessarily more valuable. If you have brand new sink faucets, while that is a great feature, it is not something that will lend you the opportunity to tack on a few thousand more dollars to the list price. New paint is also a great feature, it will make your house seem fresh and new, therefore more competitive, but again you will not be able to add thousands of dollars to your list price because you have a new paint job.

If you're uncomfortable with the comparables in your area, you can hire an appraiser.

Remember, price overcomes all objections. If your home needs work, price is that way. Don't compare it to the new house down the street that might have a more commanding price range. Don't undervalue your house either. Even in a buyer's market, a home priced correctly will sell fast.

Make sure your homework is done before setting the price on your home!