Pricing your home correctly is important and challenging. Figuring the value As a seller, it is challenging to be realistic about your home's value because of the pride and emotional attachment you have to the home. Many sellers think that your house is better than everyone else's, and should be priced accordingly. Your asking price needs to be based upon an objective assessment of what comparable homes sold for in your neighborhood. Information about home sales in your neighborhood are available in the newspaper, many libraries, and your county government offices. Recent home sales in your neighborhood When reviewing comparable home sales within your neighborhood, compare the basic information about homes, such as:
In most neighborhoods, if your home is has been on the market for more than a month, then your home may be overpriced. Most of the time, buyers or agents will give you positive feedback from all the people who have seen it, but this often politeness and a fear of insulting you by telling you that your price is to high. Common Mistakes to avoid Many people have misconceptions that hurt their home's ability to sell. The most common misconception is that a seller should start out with a high price, then reduce the price if no one puts in an offer. This strategy is a mistake, because your home receives nearly all of its attention in the first two weeks after it goes for sale. After that time period, it is considered overpriced and buyers ask "why has it been on the market so long--what is wrong with it?" Reducing the price often goes unnoticed by buyers and their agents, who doggedly focus on new listings. As a result, the home sits on the market for a longer time period, and the seller receives a lower price than they could have had they priced it appropriately to begin their listing. The following graph shows how much money you can lose if you overprice and your home stays on the market too long: Twin Cities Home Prices: How much the seller receives versus their asking price.
Please note that the chart's increase in the amount received after 39 days results from the fact that most sellers have lowered their asking price by that time. If this graph showed the percentage received of the original list price, it would continuously decline over time.Many newcomers to the Twin Cities real estate market are surprised by the low level of price negotiation that occurs here relative to other parts of the county. On average, Twin Cities home sellers receive just under 99% of their asking price, which compares to a 94% national average. Therefore, when pricing your home, resist the urge to overprice your home and think that buyers will still make an offer. In general, buyers won't make those offers, and your home will stay on the market longer, which will decrease the amount you receive. |
4 Essential Questions to ask an MLS listing company before you list Click here if you are considering selling without any help. Click here if you are considering paying for a full-priced agent. 
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