How much you think your house is worth and what it's actually worth in the eyes of potential buyers doesn't always align. Here are some of the factors to take under consideration when setting your asking price.
- Let professional experience guide your own experience. Your real estate sales representative — someone who understands the real estate dynamics in your specific area — will research how much comparable houses recently sold for, and how much similar properties are currently being marketed for. This will give you an idea of the latest market value for your own property.
- What if you list high, just to see what happens? You could list high, get an all-cash buyer and skip happily into the sunset clutching your SOLD sign to your chest. Alternatively, you could list high, get a buyer who's interested but whose lender's appraisal of the property didn't come in at that high amount, and have the transaction fizzle out due to lack of financing. Listing above market value can also result in a long sales period with no activity, during which time the property runs the risk of eventually becoming stigmatized in the eyes of buyers.
- What if you list low, and create some buyer excitement? Depending on your local market, you could list at just under market value in an effort to attract more offers, and generate a bidding war. While this strategy can work in a seller's market, you also have to take the chance it could backfire, and you find yourself facing just one offer that's at your discounted price, or even less.
Price your house properly for your greatest chance of an expedient and agreeable transaction; your real estate sales representative is your best guide for setting your home's correct price.