Pricing your home

How do I price my home? In a word, realistically.

Today’s residential real estate market is no place to look for easy profit. If you truly want to sell your home, you have to be realistic about its value, and price it accordingly. A good place to start is by determining the fair market value.

What is “fair market value”, and how do I determine mine?

Simply put, the fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase. It is usually not the asking price.

I am pleased to provide the enclosed Competitive Market Analysis (CMA). This service is provided free of any charge and it is without obligation of any kind.

The analysis will give you a realistic figure based on the most salient points of the local real estate market. It should provide information about recent sales of similar homes, including how much they sold for and how long it took. A price opinion from an experienced Realtor is very helpful in determining the right asking price.

What’s the difference between fair market value and asking price?

Generally speaking, the owner’s asking price — the advertised price of a house when it goes on the market — is set slightly higher than fair market value. You can assume that some negotiation will be necessary to reach an agreement with a buyer. I would be pleased to help you establish a competitive pricing strategy.

Who can help me determine the right asking price?

Real estate sales representatives suggest an asking prices based on a wide array of information you may not have at your disposal, including recent listing and selling prices of houses in your neighbourhood. If you’re not completely confident in my suggestion, you may want to order an appraisal.

Next, establish clear priorities. If you had to choose, are you more concerned with selling quickly, or getting the most money possible?

Someone else — a neighbour, friend or relative — may point out advantages or disadvantages about your house that you hadn’t thought about. Third-party views will help you start thinking of your house as a commodity, with positive and negative selling points. Then you should decide on a price that you feel is competitive and consistent with what other houses in your area have sold for.

How flexible should I be about the asking price?

Most buyers also leave room for negotiation when they make an offer. Thus, a certain degree of flexibility is usually called for on the part of both the buyer and seller.

It is ultimately your decision to accept or reject an offer, or present a counter-proposal. As negotiations proceed — whether in writing, face-to-face, or by phone, a cool, rational manner in what is often a long, emotionally-charged process will usually net you a significantly higher price.

Good luck! Don’t forget, I’m just a phone call away if I may be of any assistance!