look for cues about your motivation to sell—the less you reveal, the more control you have in negotiations. Upgrades do not translate into direct dollar-for-dollar returns. A $3,000 renovation does not mean you can add $3,000 to the asking price. Avoid making your home the nicest, but most expensive, house in the area—buyers may be unwilling to overpay beyond market value.
MARKET PRICE VS. MARKET VALUE
Market price is the actual selling price of a home when a bank- qualified buyer makes an offer that the seller accepts. Market value is what a home is worth based on features, competition, and buyer demand. Buyers always seek the best deal, but what they are willing to pay is often limited by their financing options.
EXAMPLE: A HOME PRICED STRATEGICALLY
A seller estimates his home is worth between $1,250,000 and $1,275,000. With multiple homes on the market, how should he set his asking price? Overpricing at $1,280,000 will make comparable homes seem like a better deal and may not sell. Pricing at market value at $1,260,000 ensures the home is aligned with similar listings and attracts buyers. Underpricing at $1,235,000 may spark a bidding war but could also result in the home selling for less than it’s worth. Setting the right price requires a Comparative Market Analysis (CMA). This tool helps sellers price competitively while avoiding
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