and what the bank is willing to finance have limits. Strategic pricing is your greatest tool when selling your home.
FOR EXAMPLE:
A homeowner decides to place his home on the market and must decide on an asking price. By rough estimate, the home’s worth falls between $290,000 and $300,000. There are many homes on the market, so what goes through his mind when finding the “right price?” • “Leave room for negotiations” — if the home is overpriced at $305,000, it only makes comparable homes more desirable. The home will most likely not sell. • “Price it according to ‘worth’” — Buyers will lump the home with like-priced homes, knowing they can buy anytime for $295,000. • “Underpricing generates interest” — Underpricing at $280,000 will motivate buyers and perhaps create a bidding war. But if not, the goal of selling the home for more money has been derailed. When it comes to finding a buyer, pricing your home according to data available in comparable, real priced sales is crucial to making the sale. Using the Comparative Market Analysis is imperative to pricing strategically. When you ask for one from a real estate professional, be sure to review the analysis, ask questions, and thoroughly understand the answers. If completed correctly, this comparison report not only gives you a great listing price but also reduces the chance of your home being under-appraised. I have a fantastic visual tool I use to explain how to create the most competitive market environment for your property. Imagine a pyramid with the top
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