There are 4 COMMON strategies that most sellers use to price their homes. It it not wise to assume that a higher asking price will net you a higher selling price. In fact, the opposite usually winds up happening. Especially if you are not listening to what the market is telling you to do. Keep these 4 choices in mind when discussing and setting your asking price.

1. Clearly Overpriced

Every seller wants to make the most money possible for their home, and believe me when I say that agents know this. If there is more than one agent competing for your listing, the easiest way for him or her to win that battle is by telling you they believe they can sell your home for more than they actually can. This happens way too often with homes that are priced 10 to 20 percent over their true market value.

This is NOT in your best interest. The market cannot be fooled. This will leave your home sitting on the market for longer than anyone had expected, leaving you, the seller, with a couple drawbacks.  

• Your home will most likley get labeled "difficult" or "troubled" by other agents, leading to a lower than fair offer, when one is finally made.
• You have been repeatedly inconvenienced with having to constantly keep your home in "showing mode" for nothing.

Far too often homes like this will just eventually expire off the market, forcing you to go through the entire process all over again!

2. Somewhat Overpriced

More than half of the homes on the market are 5-10% overpriced. These homes also tend to sit on the market longer. There is usually one of two facors here:

1. You believe in your heart that your home is really worth this much despite what the market has indicated. (There always tends to be emotions caught up in this issue afterall)
2. You've left some room for negotiating

Either way, this strategy will cost you not only time on the market, but also price received.

3. Priced Correctly at Market Value

Some sellers understand that real estate is part of the system of supply and demand, and will carefully and realistically price their homes based on the market and analysis of other homes. These competitively priced homes tend to sell within a reasonable time frame and very close to the asking price.

4. Priced Below The Fair Market Value

There are always certain sellers that are motivated by a quick sale. These homes bring multiple offers and sell extremely fast. Usually in only a few days, at or above the asking price. HOWEVER, sellers need to be sure that the agent suggesting this method is doing so with your best interest in mind.

Make It An Awesome Day!

Glen Russell

610.792.3000

WWW.GlenRussell.Com