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Setting the Price Right the First Time

The Right Price

One of the most important parts of selling a home is setting the price right the first time. Overpricing can end up with your home getting "stale" on the market, or people will lose interest because it has been shown to them so many times. You also run the risk of someone thinking there is something wrong with the house because it's been for sale for so long. Under-pricing your home can have similar problems. People looking for a home may pass over under-priced houses because they feel something must be wrong with them. Having the right price can ensure that your home sells quickly, and that you'll get what your home is worth.

Doing Some Research

When you are setting the price for your home, it is best to listen to the advice of a seasoned professional like Karyn or Kimberly Schonherz. But that doesn't mean you can't do your own research first. While you may feel some sentimental value towards your house, the true worth of the house to other people is going to be a combination of things, including location, the state of the house, and the potential it has. To set a price, there are a few things you should research and learn about first, such as:

• Pulling comparable listings - This can be done with help from your Realtor® or by looking at past newspapers


• Find records of listing prices of homes in your neighborhood in the past six months
• Check the listing prices of homes that have gone up for sale within a ¼ mile to ½ mile radius of your home
• Compare your home with homes that have similar square footage
• Investigate homes that are the same age as your own home


• Look at the number of days homes like your own have been on the market and compare the prices of each home to see what the median price was


• Make a note of how many days similar houses that are sales pending have been on the market

Making an Estimate

When you have done your research, you are ready to make an estimate to take to your Realtor®. Professional, experienced Realtors® like Karyn and Kimberly Schonherz will be able to tell you honestly and quickly whether your estimate is going to be too high, too low, or very close to a true asking price. There are some things to consider before making an estimate though, using your research and adding in these factors:

• Get a professional appraisal
• Location - Where your house is in proximity to popular places and whether it is close to any major highways or streets, railroad tracks, or neighborhoods with poor housing values
• Size - The price of a home can be adjustable if the home has unfinished rooms that could add on to the size of the home
• Repairs - The repair work necessary to make the home livable can detract from the price

Once you've added in these factors, a price shouldn't be hard to settle on. Again, it is often best to follow the advice of your real estate agent. He or she will help you against the mistake of overpricing or under-pricing.

Overpricing

Overpricing a home when you're trying to sell it is a good way to make sure you don't get what your home is worth. There are many dangers associated with overpricing, which can give you problems to overcome that will make selling your home less profitable than you'd hoped, as well as making it extremely difficult to get any serious offers. These dangers include:

• The property goes "stale" - It sits on the market a long time and people think there is something wrong with it
• Very few or no offers for overpriced properties
• Only offers can come from people who "lowball" - Offering a very low price thinking the seller is getting desperate

Under-Pricing

Under-pricing a home for sale can come with many of the same problems as overpricing a home. You can run into problems that make it difficult to sell your home, including:

• Buyers see the low price and assume something is wrong with the house
• Get people making offers that are even lower because they think you are desperate
• Getting less than your home is worth simply because you can't get anyone to offer anything more than your under-priced listing

Setting the right price when selling your home is important, especially if it is the first time you are listing the home for sale. If you have any questions about setting the right price the first time, contact Karyn or Kimberly Schonherz at 714-283-6653.

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