etting a listing price might well be the most important decision you make when selling a property. Naturally, you’ll want to get as much as you can, but the price you’ll eventually command depends on a multitude of factors. Critical, of course, is location. Condition and amenities rank almost as high.
No matter what you think your home is worth (and owners tend to over evaluate that number), homes only net what buyers are willing to pay for them. Pricing instead must be based on comparable nearby sales, while taking into account the home’s location, upgrades and/or limitations and available competing inventory.
Sellers often want to test the waters by setting an above-market price, particularly when inventory is low and sellers hold the cards or simply to allow for "bargaining room." This tempting tactic can backfire. Buyers view the home as overpriced and look elsewhere, not even considering the possibility of a lower-price offer. Often times, the home sits for too long on the market, getting staler by the day. Ultimately, the seller is left with no option but to lower the price, possibly raising doubts in buyers’ minds about the home’s suitability.
An overpriced house will end up costing you more in the long run. A far better approach sets the initial price in line with area comps, which invites interest, tours and in some cases multiple offers.