Pricing Your Home

Arriving at the optimal list price requires evaluation and understanding of current marketing conditions, the marketable features of your home and recent trends in the real estate market. When assisting you in determining a listing price for your home I will answer the following questions:
  • What have buyers recently paid for similar properties?
  • In today's market buyers may compete for your home and offer more than the asking price. What was the asking price versus the amount that the buyer actually paid?
  • What properties are competing for the attention of buyers right now?
  • What properties have not sold, indicating what prices buyers are unwilling to pay under current market conditions?

Avoid over pricing your home! I cannot stress this enough. Over priced homes rarely recover, even in a seller's market. The home usually ends up staying on the market significantly longer than the average sale time and ends up selling for less than the fair market value. In today's market, the price needs to be set competitively with the other homes for sale. Let the buyers drive up the price in overbidding!

Pricing your home over the competitive asking price of similar homes can have the following adverse results:

  • Agents do not show your home because they recognize it is over priced
  • Buyers that do view your home are comparing your home to homes that offer more for their money
  • Buyers are concerned that your home will not appraise, making it difficult to obtain adequate financing
  • Your home becomes "stale" on the market, even if price reductions are made. Agents and buyers assume something is wrong with your home and, assume either it is a waste of time to look at it, or that they can make a "low-ball" offer.
Tom Martin

Golden Gate Sotheby's International Realty

License Number: 01272381