Setting a Price

Factors Affecting Your Asking Price

  • Location, square footage, and condition of your home and home’s amenities.
  • Level of demand for homes in your area.
  • Amount of competition in your price category and area.
  • Recent sale prices of homes of similar size and in a similar location.
  • Availability of financing and interest rate levels.
  • How quickly you need to sell your home.
  • Whether you need to sell in order to finance the purchase of another home.

Factors that Don’t Affect the Asking Price

  • What you originally paid for your home.
  • The cost of improvements you have made to your home.
  • What it would cost to build your home today.

Dangers of Overpricing

  • Qualified buyers won’t consider your home, believing it to be financially “out of reach.”
  • Your home may remain on the market for a longer period of time, growing “stale,” and increasing the perception that there is something wrong with it.
  • The highest and best offers usually occur within the first 30 days of listing your home. An overpriced home misses out on this crucial time period.
  • Your home helps similar homes that are priced more competitively to sell faster. It demonstrates that these other homes offer more value.
  • Lowering your price, later on, gives the impression that your home is “unwanted”.