Naturally, you want to get top dollar for your home. Everyone does! But, at the same
time, you don't want to scare off potential buyers with a price tag that's too high. Setting
an artificially high price may cause your property to languish on the market for months.
Reducing your asking price later on may lead buyers to wonder if there is something
wrong with your home. If they see your home listed for a long time, while others sell,
buyers think "There must be something wrong with it." Buyers stop coming, and
eventually the price is dropped far lower than the seller would have gotten had they priced
it appropriately from the beginning.

Almost all buyers ask "How long has it been on the market?" They will then consider the
answer to that before they put in an offer. A high number of "Days on the Market"
indicates desperation to most buyers, and drives the offer down. They don't care if the
number is high because your price was $20,000 higher when you listed. They just feel the
sellers are probably tired of showing their home, "Let's just see how far down they will
come." All the studies show that the sooner a home sells, the more the seller gets. Here
are some of the factors to consider in pricing your home.

• Location, Location, Location (eg. Is the home on a busy street with yellow lines
  down the center, or in a desirable residential neighborhood?)
  
• Economic conditions (Interest rates, etc.)
  
• Supply and demand in the local housing market (Are there many homes for sale or
  few)
  
• Average Days on the Market for the homes in your community
  
• The length of time you are willing to wait for a buyer (Do you need to sell quickly
  because of a job transfer or health condition, or can you wait until you find
  someone willing to pay your price)
  
• Seasonal influences (Moving in January when the potential for unkind weather vs.
  the sunny summer)
  
• Local schools (vs. paying for private education)
  
• Average home prices in the neighborhood (Is your price in line with other sales or
  far above the highest, NO ONE wants to own the most expensive house in a
  neighborhood)
• Your home's extras -- pool, fireplace, finished basement, central air, etc.
  

To determine the value of your home, you probably will want the advice of a real estate
agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent
selling prices of several properties in and around your community comparable to your
own. The agent can help you adjust for the unique features of your own property. If you
are uncertain about the value placed by the Realtors, you can always hire an independent
appraiser. They will charge you a fee, but the value will be supplied and explained in the
report comparing your property to at least 3 recent homes that sold in your area or
community.

An appraiser will be hired independently by the mortgage company selected by your buyer.
When a mortgage is approved an appraisal matching the value paid by the buyer is
required. Unless a buyer is putting down substantially more than 20%, this is a factor you
must consider. If the value of your home is not substantiated by the appraisal you have
three options. First, the buyer will need to come up with more money to cover the
difference. Second, you could sell your home to the same buyer for the appraised amount.
Or third, you could look for another buyer that would be willing to pay more than the
appraised amount.

None of these options are nice. In today's society, most buyers spend all the money they
have to buy a house, so they don't have extra. Most sellers are counting the dollars they
are expecting to receive, and have plans on using that to buy their next home. And finally,
finding another buyer to pay more than an appraiser said it's worth - I am sure you know
that won't likely happen.

Remember, even though you want the most money for your home that the market will
bear, the buyers want a good buy. Buyers looking for a home will look at each and every
home available in your price range before making a decision. If your price is way too high,
no offers will come. If it is slightly high, fewer offers will come, and may insult you as a
seller. If your price is within the market range that is appropriate, you will get good offers,
and be ready to make your move.

If you do want to sell through an estate agent, it may not always be best to choose the one
that gave the highest valuation. You should get to know the local property market and
sales prices before you make your choice. This will give you a realistic idea of how much
your property could be sold for and avoid any long delays before your home is sold.
Bottom line, buyers buy homes that have value to them, and agents show homes that they
think they can sell.