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Pricing Your Property

Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit, and how much you profit from the sale of your home. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity. This is called Fair Market Value.

Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost—in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating  your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.