Determining Your Home's Price

Determining Your Home's Price

The real estate market is constantly fluctuating, so pricing is not an exact science. Rather, it's a reasonable figure derived from a number of different components such as:
  • The status of the current real estate market.
  • The expertise and market knowledge of your real estate associate.
  • Hard facts such as lot size, square footage and condition of your home.
  • Desirability factors, including location, special amenities and property attributes.
  • Selling and listing prices of comparable homes.
  • A sophisticated real estate marketing plan.
  • Your level of motivation.
It's important to note that the following conditions do not affect your home's price
  • The profit you wish to make from the date.
  • The amount of money you've spent on improvements.
  • What other sources, such as friends and appraisers, have told you it's worth.
  • What you originally paid for the home.

There are also some problems that may arise if your home is overpriced

  • It can attract lookers, not legitimate buyers
  • It implies that you aren't motivated to sell
  • It reduces the number of showings
  • It helps the competition
  • If it doesn't appraise at the higher price a buyer may not be able to secure a loan
  • You may ultimately have to drop your price below market value in order to sell