When a person decides to sell his or her home, the first question that generally comes to mind is, "How much is my home worth?" The answer to that question is not always easy to determine because there are many factors to consider. Price the home to high and it won't sell, losing valuable and often critical sales time. Price it too low and you lose money. For these reasons, properly pricing a home is one of the most crucial aspects in the decision to sell a home.
Such an important decision as determining the listing price should not be left to a guess. Even setting a price based on a neighbor's recently sold home can be a mistake because all homes have some unique qualities which could reduce or increase the asking price over similar homes in the area.
Home prices are also influenced by current market conditions, If interest rates are up, you may find home prices being reduced to compete for the available business. Other factors which might make a difference in pricing your home would include the number of competing homes for sale in your area.
Consideration must also be given to the seller's motives. How quickly must the seller mover? If the time frame is short, properly pricing the home from the start is crucial. Those first few weeks a home is on the market will bring the most interst from the real estate community. A seller will not want to price a home right out of the market and miss this important time frame.
In short, it takes more than just looking at recent comparable sales prices to determine the proper asking price for a home. It takes an analysis of that information, coupled with an understanding of current market conditions.
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