Another Spring market is on the horizon and anyone who has been contemplating a move has probably already spent considerable time wondering what their home is worth. In addition to the various and sundry other tasks that Sellers are told to address before going to market, the most important consideration is always price. Pricing is not an exact science, and everyone wants to get the most money possible. However, it’s important to bear a few things in mind so as not to miss the mark completely.

Don’t be greedy. 

Remember that Buyers judge both you and your home. If yours stands out next to others in the area simply because of the price, they will quickly channel their efforts towards those other properties thereby passing you over altogether.

List Prices Are Not Sale Prices.

One aspect of real estate I love most is the challenge of bringing Buyers and Sellers together – in other words, reaching that meeting of the minds. Sellers are free to demand whatever they like. Ultimately, however, it is the Buyer who determines fair market value. So, when you look around your neighborhood at the competition, keep in mind that the prices Sellers are asking do not necessarily reflect the values Buyers have attached to them. So, make sure you are dealing with actual sales data (i.e. the prices at which neighbouring houses have sold for) and not just what other Sellers are currently hoping to get for their properties.

Price Reductions Send The Wrong Message.

Don’t be fooled into thinking that, once you’ve missed the mark on price, you simply reduce the price and it will sell. Price reductions can send some rather unfair and unnecessary messages:  (i) The Sellers are greedy.  (ii) Neither the Sellers nor their agent have any idea what they are doing.  (iii) The Sellers aren’t that serious – they’re just testing the market.

One final note about Selling in general: Get honest, objective feedback. I’ve said it before, but it warrants repeating: Owners (including real estate professionals) are not the best ones to determine what their property is worth. Get unbiased opinions and feedback about the upsides and downsides to your home. The things you love about it may not translate well to the open market. Similarly, things you view as obvious to everyone may need to be showcased or spelled out for prospective Buyers.

Need help getting the most for your home? Visit this link: Tips To Higher Prices

This is an excerpt from my January 2012 E-Newsletter. To read the full issue, click here: Selling Your Home And The Perils Of Overpricing