The single most determining factor to selling your house in any market is the asking price. That rings especially true when the market is in a serious slump. You want to attract potential buyers and get offers on your home and at the same time accomplish a good return on your investment. It cannot be stressed enough how important it is to price your home correctly. A price too low will or high will create hesitancy by buyers and they may never be seen as they think something is wrong.
Think about this: Have you found something for sale that is really cheap and have you wondered at the same time if something was wrong with that item? Buyers that think your home is priced too low will think that. You cannot price too high either because buyers will consider their financial situation before your house being what they want and you will not sell.
You need to keep in mind that most buyers today have a good idea of what homes are selling for in and around your neighborhood. There is the internet and help from buyers. If the buyer has been looking for any time at all in your area they have a very good idea in mind of the comparable prices that exist in your market. The condition and amenities of your home can push your price a bit higher, but not to the point where it raises a flag or your house will not be looked at and subsequently not sell. Look seriously at the average fair market value of your home in its neighborhood and weigh accordingly.
Remember people in todays market are no different than the market a few years ago. They will still want to haggle you down some before making a final offer to buy. Expect it and price your home accordingly.
Just a little bit though and not more than a couple of percentage points. Most buyers are going to let their emotions make the final decision. If they are looking at a house in their price range and they love the house and it is priced in their mind correctly, you have a good chance of making a sale. So, price it and be willing to go downward from that price a few thousand dollars and you should be in a good position to let your price help make the sale. If the price doesn’t help you make the sale you will be sitting on your property.
So todays advice is in a tight and distressed market. Research research research. Do not use last years prices. Compare prices in your neighborhood from a year ago to today. You have to adjust to these economic times and reflect that in your research and price or you will be off base. You cannot afford to be wrong in your calculations or you will not be selling your home in the foreseeable future.