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A Few Good Tips on How to Realistically Price a Property for Sale

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Don’t guess, don’t rely on your emotions or financial status, and do not assume that you know the FMV (Fair Market Value) of a property. Please, do your due diligences, check more than one source, and only then arrive at an asking price.

Seek the Professional Opinions of Several Local Real Estate Agents

Getting a few CMAs on your home should not be difficult. These comparisons should not only contain the FMV prices of recently listed homes, but ones that have sold, and ones that have not. Knowing which homes are not moving and analyzing why they are not closing, can be very helpful to you when you need to arrive at a price for your property.

Too Many Sellers Make the Mistake of Thinking That Their Opinion Of The FMV Is the Same as Buyers

Regardless of how much you value your home or how much you may have paid for it ten or fifteen yeas ago, what you have invested in improvements or what you may need to realize from the sale to suit your investment needs, buyers will only care about the current FMV and local demand for similar properties.

Understand the Local Market Trends and Stay Up-to-date

Knowing the current supply and demand is not the only thing, you will also need to research about current trends. Are the local job markets, economy and business environments good ones, or are local conditions depressed? How does your region compare to others nationally is also a question to ask yourself before deciding the asking price.

Attend Open Houses In Your Neighborhood

By attending open houses, asking questions, and then asking yourself if you would consider purchasing the home being shown will also help you to more objectively view your own property, and the asking price you are thinking you should assign to it.

Pricing a Property by the Square Foot Method Can Be Helpful, But Only in Conjunction With Other Factors

Every locale has ‘standards’ for square foot pricing on newly built and existing homes. Although these estimates can help, there are far too many other criteria that will also have bearing. When implementing the pricing by the square foot method, be aware of comparisons to other similarly sized homes, and consider all the criteria

What Can You Offer a Prospective Buyer That Could Encourage Them to Commit?

The price you ask is not the only factor that buyers consider. The terms and amount of time to close are also of major concern to most buyers.  If your financial situation allows, and you are prepared to possibly have a buyer default and return the property to you, you may wish to offer them financing on your own. The more you are willing to negotiate terms that are helpful to the seller, the closer you will be to selling. Being able to close quickly and turn the property over to the buyer is always a major concern of theirs. Being in a position to offer a quick turnover can often determine if a deal will close or not.

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