be in excellent shape and is expected to be a standard norm with any property that a buyer is intending to buy, thus not adding any value to a home, but simply bringing it up to par and selling standard with the majority of all the other properties on the market. Proximities to schools, bus routes, and medical facilities can create value that certain buyers are willing to pay for. Buyers look for the right deal, but what they are willing to pay, or what the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A homeowner decides to place his home on the market and must decide on an asking price. By rough estimate, the home’s market value falls between $290,000 and $300,000. Many homes are on the market. These are some pricing considerations and approaches to finding that “right price”: • The “start high and leave room for negotiation” approach. In this approach, the market value is “stretched,” say to $310,000, and is listed above market value. The price will not entice many buyers, but may make comparable homes more desirable. The home will most likely not sell quickly, or at that price, and runs the risk of sitting on the market longer than the majority of homes that are priced at value, thus creating a negative stigma in the eyes of a buyer, which eventually will lead to low ball offers and have an adverse affect. • The “price it according to worth and at market value" approach. This approach sees the price set right between the market value benchmarks, at $295,000. Likely, home
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