How to Price your Home to Sell and Still Make a Profit
The asking price you set for your home significantly affects whether you will profit in the
sale, how much you will profit and how long your home will sit on the market.
Your real estate agent's knowledge of the overall market and what's selling
or not selling - will be invaluable in helping you determine the price.
The objective is to find a price that the market will bear but won't leave money on the table.
Here are some points to consider: Time. Time is not on your side when it comes to real
estate.Although many factors influence the outcome, perhaps time is the biggest
determinant in whether or not you see a profit and how much you profit.
Studies show that the longer a house stays on the market, the less likely it is to sell
for the original asking price. Therefore, if your goal is to make money, think about
a price that will encourage buyer activity (read: fair market value).
Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity.
It's important that you not confuse value with cost - in other words, how much you value
your home versus what buyers are willing to pay for it. Don't place too much emphasis
on home improvements when calculating your price, because buyers may not
share your taste. For instance, not everyone wants hardwood floors or granite
Keep it simple. Because time is of the essence, make it easy for the buyers.
Remain flexible on when your agent can schedule showings. Also, avoid putting
contingencies on the sale. Though a desirable move-in date makes for a smoother
transition between homes, it could cause you to lose the sale altogether.