10 tips to price your home right

1. Consider the comps – “Comps” are comparable homes in your neighborhood that were for sale, recently sold or are currently for sale. Comps are the most important factor in pricing your home.
Consider comps in conjunction with local market conditions, including the supply of for-sale homes relative to buyer demand, says Allyson Bernard, owner of Real Estate Professionals of Connecticut in Danbury.
“Less inventory means you can probably push the envelope a little bit on (pricing) your home, but we’re not in a market where you can double your price or increase it 30 or 40 percent above what the comps are showing,” Bernard says.
2. Check out the competition – Visiting currently for-sale comps can help you compare them to your home.
“At a minimum, you need to know what location they’re in and what curb appeal they have,” Bernard says. “If there are open houses, go through. Just be honest with whomever is at the property. Say you’re working with another real estate agent and contemplating putting your home on the market. Ask whether it would be OK to walk though.”
3. Price to appraise – Sold comps should get extra weight, says Jean Bourne-Pirovic, an agent with Long & Foster Real Estate in Silver Spring, Md., because your sales price will be subject to an appraisal, unless your buyer agrees to pay cash or waives any appraisal contingency. The appraisal of your home will be based on sale prices of sold comps. If the appraisal doesn’t support your agreed-upon sale price, the deal might not close.
4. Don’t pay for an appraisal – Though the buyer’s appraisal will be important, you don’t need to obtain a separate prior appraisal to price your home. Instead, Bernard says, you should be able to rely on your real estate agent for the information you’ll need.
5. Rule out square footage – It’s OK to consider price per square foot “as a general statement,” but this calculation shouldn’t be a primary or decisive factor because it’s nearly impossible to compare two homes on this basis alone, says Gary Rogers, broker/owner of RE/MAX On The Charles in Waltham, Mass.
For example, one house might have a buyer-preferred floor plan while another might have chopped-up rooms, yet both could be the same size. Price per square foot can be somewhat more helpful to compare condominiums in the same complex.
6. Don’t “sell your listing” – A Realtor who proposes a pie-in-the-sky asking price might be trying to flatter you to win your business, only to push hard for a price reduction as soon as the ink is dry on the listing contract. This tactic, known in the realty business as “buying the listing,” is a dangerous trap for sellers.
“Be careful that you don’t try to talk yourself into liking the agent who came in with the highest estimate,” Rogers says. “Go back to the Realtor you trust.”
8. Don’t over-price – Sellers who push well beyond the likely sale price are “cruising for trouble,” Rogers says, because a too-high price can turn into a price reduction.
“If the seller had to reduce the price in a hot market, it really looks tainted,” he says. “Buyers will read into it that it’s probably more over-priced than even that difference.”
9. Don’t under-price – Deliberately under-pricing a home to try to attract more buyers is also risky.
“Buyers come in at an asking price because they guess or they’ve been told there is not another offer,” Rogers says. “Pricing $10,000 lower, you are betting that there may be more than one buyer bidding.”
Instead of your hoped-for bidding war, you might not receive any offers or you might get just one offer that’s exactly equal to your artificially lowered asking price.
10. Pick a number – Retailers like prices that end in 99 cents, but Bernard says a price that doesn’t end in the predictable 00 or 99 is a smart strategy.
“I use weird numbers,” she says. “My clients laugh at me, but it works. People call up and say, ‘Why did you put that price?’ So you would call me and ask, and now, I can tell you one-on-one about the property.”

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About The Author

Joseph Sabeh Jr.

Please let me introduce myself, I am Joseph Sabeh, Jr a full time licensed professional realtor. I have been with Executive Homes Realty for over 13 years and was trained by my late father and Broker, Joseph Sabeh. I recently incorporated the company and we moved the office to 43513 Mission Blvd just last summer. I could not have found a more honorable place to work. After earning my experience selling high end Ralph Lauren suits and studying business management in southern California, I decided to pursue my dream of selling real estate and working with my father. He had already had such an excellent reputation and established a niche market of high end clientele that catered to the very best. I wanted to become the consummate professional just like him and have strived to become just that being just a phone call or email away from getting back to my client’s immediate needs! Known by my clients for my tenacity, perseverance , and excellence in negotia- tion(Certified Negotiation Expert), I have always strived to meet my clients high demands and goals. As a result of my professionalism, I have achieved an extensive portfolio of referrals from past and present clients. I credit my current values from my upbringing of my parents and the credit is due to them without question. Their integrity, pride, and willingness to sacrifice for the better of my life and my sister’s always left a mark on me that one day I will pass on. Their desire to achieve a better life and live it to the fullest is one that some families dream of and I certainly am appreciative of all of the education and etiquette I have learned from them both. I have sold condos up to 3.2 million dollar homes and I am here for any and all of your future real estate needs and wishing you the very best experience in your future real estate endeavors with me.

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