CHAPTER 5 Make Sure the Price is Rig e the Price is Right When you buy a home, the three most important factors are location, location, location. When you sell a home, the three most important factors are price, price, price. Sure, I’ve spent a lot of pages explaining the ins and outs of FSBO real estate transactions. But, if I had to boil it down to the most important concept, it is: Set the right price out of the gate so your home sells quickly for the highest price possible. Many sellers think they’ve got an infinite window of opportunity to set the right price on their house. They often start high—they essentially pick their dream price, which may have little to do with reality—and figure they can always slowly reduce it until someone bites. That’s not how the real estate market works. Setting a price too high, aka “testing the market,” discourages buyers and offers. As you chip away at the price, your listing languishes on the market, becoming stale and even less attractive.
How can you divine the absolutely right price for your home?
First, forget the idea of “perfect price.” Pricing a home is part research, part experience, and part alchemy. Ultimately, you can only know you’ve set the right price on your house in hindsight. If it sold quickly and, hopefully, for more than asking, you priced it right.
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