It is not enough if the appearance of the home is impressive. The selling price should be competitive to gain high return on investment.

Suggestions on establishing your selling price

Comparative Market Analysis:

What is a CMA?

A CMA is an approximate fair market value (see below) that is given for the property.

The CMA is determined by an on-site view of the property for sale (yours) to examine the condition and features offered. Next, similar properties that have recently sold and current similar listings are compared to your property and adjustments in value are added or subtracted based on the varying features and conditions of the other properties for sale that are similar to yours.

Fair Market Value:

The value of an item as established by a consideration of how much an independent buyer would pay to an independent seller in a completely free transaction for the item.

Establishing Your Selling Price

If you start out with too high a price on your home, you may find that you have just added more stress to yourself -- and selling a home is stressful enough.

Listing agents market and promote your home to many of other local real estate agents who work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients, providing the price is right.

If you have overpriced your home then you can be certain that fewer agents will be willing to preview your home - They are Realtors and it is their job to know local market conditions and home values - Their time is better spent previewing homes that are priced realistically and if your house is priced dramatically above market why would they waste a prospective buyers time when they can show an equally comparable home priced for less.

Benefits of Proper Pricing

• Faster sale

  When your home sells faster you will save money (mortgage payments and other ownership costs).

• Less inconvenience

  Proper pricing reduces these demands on you by helping your home sell faster. You may already know how much energy it takes to prepare your house for showings (cleaning, etc..)

• Exposure to more buyers

  At fair market value you open your home up to more people who can afford the asking price. Sellers who list at a higher price hope that they’ll find the one purchaser who will pay it but often do not realize that they have discouraged many potential buyers who could have afforded the price that the seller will end up accepting at a later date.

• Increased salesperson response

  When salespeople are excited about a home and its price, they make special efforts to contact all of their potential buyers. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Their excitement is contagious!

• Attracts higher offers

  When a home is priced right, buyers fear they might lose out on a good home, so they will be less likely to make "low ball offers."

• More money for the seller

  If a home is priced right, the excitement of the market produces higher sale prices. You net more both in terms of actual sale price and in mortgage payments and other ownership costs.