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Determine The Listing Price

Posted December 9, 2013

When it comes to buying a home, most potential buyers will say that the listing price is the number one factor in determining what homes they will look at. A seller will usually work with a realtor to determine the listing price keeping in mind that if the price is too high - most buyers won't give it a second thought. Setting the correct listing price makes for a much quicker sale, because it will attract more potential buyers to the property. If the price is right, you will notice a greater response from realtors and you will receive more phone calls about the property. A listing price is very important because it will ultimately determine whether or not your property will sell.

In the listing prices phase of selling your home, your realtor should help you set a price based on comparable sales in the area, market conditions, incentives offered, net proceeds estimates and other pricing considerations. When determining the listing price of your home, put yourself in the shoes of the buyer and realize that if you set the price too high, it won't be picked frequently for viewing - even if it is nicer than other homes on the street. On the other hand, if you list it too low, the house may sell quickly, but you will not get what it is worth. Setting a price slightly higher may make the time you wait for a sale longer, but in the end you will make more money.

As a buyer, look at the listing price of a home and then compare it with the prices of other homes on the market. Try to track prices over the last few months to get a better idea of what going prices have been. Your real estate agent can probably prepare or obtain a Comparative Market Analysis (CMA) for you, which will help estimate what a particular home should sell for as well as what homes nearby that failed to sell were listing for.

As a seller hiring an appraiser to give you a written appraisal can be valuable and will clearly state what your home is worth. It should include photos of the house and the area around it, as well a site map and floor plans.

Offering incentives might be attractive and effective to lure in buyers. You might start offer listing at a higher price and see what happens. IF the house doesn't sell and there doesn't appear to be an interested audience, try lowering the price to see if that draws more interest. If that doesn't work, try lowering the price again until you reach a level that buyers find appealing. You might also offer to pay some of the closing costs to attract buyers who are working with a limited budget. You may even want to add a bonus to the selling broker above the commission. This gives the broker greater incentive to bring prospective buyers to the property.

By Richard Bleuze

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