Price your home to sell it for top value but be realistic about what that is. Market value simply put is the maximum price a buyer is willing to pay that a seller is willing to accept at a given point in time. As soon as someone is willing to pay more, the market value at that moment moves up. If a seller wants more than market value, the home will not sell until the seller begins to align his/her expectations with the "market value". Here are some key points to remember when pricing your home. 
- The price that you paid for your home really has little or nothing to do with the actual value of your home today. This is particularly true if you have lived in your home for several years or more. Most buyers are not so much concerned with what you paid for the home but with what other homes are on the market at the time they are purchasing.
- The profit that you hope to gain from the sale of your home has absolutely no impact on the true value of your home. Market value has more to do with the willingness of buyers to pay you what you are asking. If there is competition for the home they will often pay more. If there isn't any competition, they will often look for a price reduction.
- You need to remove emotion when determining a fair selling price for your home. To potential buyers, your memories are not worth an increase in price. The things that impact buyers are location, functionality, and how well the home shows compared to the other homes for sale. Compare your home with other houses on the market to get an idea of what your home is really worth.
- Your Realtor’s assessment of the home’s value may or may not be accurate. OK, some Realtors won't like to admit it but sometimes we do get a price wrong, especially in a moving market. Personally, I have sometimes over priced a home and had to reduce it in order to sell. As well, I have sometimes under priced a home and we have received multiple offers at prices higher than the list price due to increased demand. The only accurate test of market value is to list it and see how much you are offered. If you are offered more than you are asking, the market may be stronger than you think. If no one offers, you may concluded that the market value is less than your asking price.
- A real-estate appraisal is a good way to determine the ballpark value of your home, but it does not consider the market conditions under which you will be selling your home. Appraisers look back in time at the market values. But the market looks at what is for sale now. The past doesn't always jive with the present.
The value of your home is really determined by the buyers looking for your home and the amount that they are willing to pay today. Pricing your home is not a strict science. It involves research but in the end you must be able to forcast what is happening in your local market on a go forward basis. You may not get it perfect all the time but with the right help, you can certainly come close to it.
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About the Author: R. Greg Osmond is a Platinum Award winning Realtor dedicated to serving the people of St. John's, Mount Pearl, Paradise, Kilbride, Goulds, Conception Bay South (CBS), Portugal Cove-St. Philips, Torbay- Flatrock- Pouch Cove, and Logy Bay - Middle Cove - Outer Cove, Newfoundland and Labrador. For over 21 years Greg has been practicing in Real Estate. He can be reached at 709-895-2500. Want to get in touch? Email rgosmond1@gmail.com. For more information, please visit http://www.rgregosmond.com. Thinking of selling your home? I have a passion for helping my clients with buying and selling real estate! If there is any way I can be of service to you today, please feel free to contact me! Click Here To SUBSCRIBE. Your Mother will definitely approve!
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