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Setting the Price The price is usually the first thing buyers notice about your property. If you set your price too high, then you may eliminate potential buyers. If you want your home to be taken seriously on the market, you will need to set an asking price that is reasonable (based on current market conditions).
Several factors should contribute to the final decision on what your asking price will be. Study other homes on the market that are of comparable size, condition, location and amenities. Get an idea of the competition with which you are dealing. If you use an agent, he/she will provide you with a Comparative Market Analysis (CMA) which will be of help in this process. The CMA will reflect the following:
- The sold homes in your area in the last six months with the asking and selling prices of each.
- The current inventory of houses on the market, along with the features of each home.
From the CMA, you can consider the difference between the asking and selling prices for all homes sold, the condition of the market and other houses on the market comparable to yours.
Also, try to find out what types of homes are selling the best on the market and see if that applies to your own situation. Buyers follow trends and knowing about these trends can also help you set your price.
Always be realistic and set your price to reflect the current market situation in addition to your own financial situation. NEVER pick a price out of thin air.
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