. It really doesn't matter how much money you think your home is worth.
. It doesn't matter what your neighbor, friend, brother or mother think you house is worth.
. It does matter what Buyers think your house is worth.
So pricing it right from the start is very important. The best person to help you in the pricing is your agent - the professional who does this every day - the person that has access to all the information i.e. sale price of similar properties, making adjustments, familiar with present inventory of similar houses. After taking all this information into account - your agent will come up with a range of value. No two evaluations will ever be exactly the same but pretty much in the same ball park. The market always dictates the price.
Sometimes its wise to price the home under the competition and you will receive multiple offers and drive the price to market value or a little over. Who can advise you - Your Agent. Pricing your house under the market value presents very little danger but pricing it too high might cause you to do regular price reductions until you arrive at market value but by then you will be chasing the market. When selecting your agent - don't do it on price alone.
EXAMPLE: The seller of 4 bedroom, 3 bathrooms with a double garage was priced by an agent at $629,000 because he had sold (so he said) 3 similar models in the neighborhood and was totally familiar with the area. Another agent had priced at $584,000 because even though it was a large home in a great location it did some updating. After 3 weeks, the first agent did a price reduction to $619,000 - no offers - 3 weeks later, another reduction of $10,000 and so on until the house was priced under $600K range. By then, potential buyers were thinking that there's something seriously wrong with the property.
A full 4 months later, the second agent, contacted some Buyers who were looking for a 4 bedroom in that area and presented an offer at $575,000.00. After a few hours of negotiating, the parties came to an agreed selling price of $584K. In the meantime, the seller developed some stress associated health issues and needed to be hospitalized. She had already purchased another home and was very upset that her home wasn't selling.
Had the Seller selected the second agent, the house could have been sold within weeks of hitting the market.
Remember that REAL ESTATE IS ALL ABOUT YOU!
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