Pricing your home for sale is the most important part of marketing your home. It is the #1 marketing tool for getting your home sold.

 PRICING STRATEGIES

 Each home has a maximum potential value (the price your home should sell for) that is determined by the market place. The list price is a marketing decision that has clear risk and benefits. Here is a simple outline or guide you can follow when deciding on how to price your home.

The first step is to work with your Realtor to determine what the most likely market value of the home is. What will the market pay for your home?

 1. Setting a listing price below the market value. The benefit is you will have a very competitive price and likely will sell it quicker and not have to offer further discounts. The negative is you may be leaving money on the table and could have sold it for more. If you are motivated to have a quicker sale and want to minimize making monthly payments on the home then this may be an appropriate strategy. It may also make sense in a buyer's market because it will make your home more competitive. The further below market value you go the more these pros and cons become true.

 2. Pricing it at market value. This is a safer bet and you are likely adding just a little for negotiations. (Your real estate agent can tell you the typical discount from list price to sales price in your market). You aren't trying to be too greedy by listing it too high and are still trying to be somewhat competitive. This is the middle ground approach.

3. Pricing it higher then market value. The benefit is earning more money. The risk is you have overpriced your house. It can take longer to sell which means more mortgage payments and more expenses.  When a house comes on the market there is an initial surge of buyers who take a look. If a home is overpriced you risk loosing the benefits of the surge. If you then have to lower the price the market may start perceiving you as being more motivated and start driving your price down even further. The higher you list above the market value the more you risk having to eventually discount the house below the market value.

 At Revealty we are unlike other real estate firms. We won't tell you at what price to list your home. We will tell work with you to determine the likely market value. And we will work with you to show you the pros and cons of different pricing strategies. But ultimately it is up to the Seller to determine what risk they are willing to take when listing their house. It is up to us to reveal to you what those risks are.