When you want to price your house for sale, there are several steps to take. First review a list of all the homes that have sold in the past 3 months. Then compare that with a list of all the homes on the market right now.  This is commonly called a CMA.  I'll be happy to provide you one FREE.  Look at each home as if you were the buyer and see how the home you want to sell compares - Be Honest! In our declining market, it is important to price your house right. In that regard, there are three main strategies, pricing your home above, at, or below its market value. Let's look at all three.

Pricing above market value: Most sellers like to price their home high thinking that someone just might come along and pay it, or they can make an offer. That's not apt to happen. Today, most buyers shop for a home and know exactly what the market is like and won't be fooled into paying more than they know it's worth. In years past, when prices were going up, the market would eventually catch up to inflated pricing, and you could sell your home. This is not a good strategy for today. In fact, it could mean that you are missing out on the real buyers who are serious right now because they won't even look. Worse, those buyers could compare your beautiful home with the ugly one that is priced well below yours and see what they can do with that ugly one for a fraction of the difference in price.

Pricing at market value: This can be a good strategy since that's what the home is worth. This is especially good when the market is on it's way up or when there is not much competition. However, in today's market, prices are going down and there is a glut of homes on the market. This may not be the best strategy for today. When you chase the market down, you end up getting far less than you may have gotten in the beginning. Read on...

Pricing below market value: Hold on, don't get upset! This can be an excellent strategy for today. Your home will be shown more often, and it will be compared to the competition. When yours is lower than the others, guess which one that buyer will make an offer on? That means you get your home sold before the competition all has to drop to that price. But what if yours is nicer than the ugly one down the street? Price it comparably with the ugly one and see which one sells. Remember, you don't have to accept less than your asking price, but at least your home has been seen and liked, so is more likely to get an offer. This strategy can be excellent in today's market since buyers recognize bargains. Pricing your home low can even set up an "auction" like atmosphere where several buyers bid for your home, sometimes realizing a better price than what you were asking.

Remember, everyone wants to win, you and the buyer. Once you have an offer, no matter how low it seems, you can always counter it at full asking price, but give the buyer something of value, like throwing in the refrigerator or the washer/dryer. Even if you wanted those items to be sold with the house, never offer them up front, you can use them as bargaining chips in negotiation. Let your buyer think he has won by "giving in" when he asks for the appliances to stay, or asks you to leave that chandelier.

If you have done your homework, you don't have to worry about setting the wrong price on your home. Ask your Realtor to see the "critique sheets" they have collected from other agents that have seen your home during tours and broker's open houses. These critiques come from agents who work with buyers every day and know what buyers are willing to pay. When you see how home values look on a graph, you will see your home's true value to buyers. If your home isn't getting at least two showing a week and priced within 5% of the average value, it's overpriced. You should drop that price until you see this happening. Don't let your listing get old or stale. It will eventually sell for less than you would have received if you had priced it right in the beginning.

Call a Real Estate Professional to help you make that all important pricing decision.  Call me, I can help you today!