How to Determine the Price of your Home

Why is it that some homes sit on the market for aconfident that he or she will be able to sell it for a price
year while others sell like hot cakes? Frustrated sellersthat both you and the buyer will be happy with.
will blame a bad market, while a good real estateHowever, if you're under time constraints because of
professional will tell you that many times, a slow sale isunexpected job changes or moving agreements
often attributed to the listing price.you've made on another property, this will narrow your
If a home is overpriced, buyers will stay away. But, ifchances of selling the home for top dollar in the
the price is competitive with similar homes in the areamarket.
and "shows" better than the competition, it will have aAssuming you have sufficient time to market the
better chance of being sold quickly.home, here are a few small steps you and your agent
The secret is perfecting a technique that's ascan take to finding the right price for your property.
Canadian as the maple leaf: comparative shopping.The best comparisons can be made with similar
Although comparing houses with different styles,homes that have been sold within the last 45 days as
square-footages and locations is challenging, realopposed to the standard six months. Any longer and
estate professionals still feel it's one of the bestother factors, such as the economy, could cloud your
methods to use when determining a home's marketview of how much your home is really worth.
value.Another good benchmark is to review the selling prices
A responsible real estate agent will effectivelyof homes that have just been sold and are pending
evaluate a home's worth through a process known ascloses. Most MLS services provide information on
Comparative Marketing Analysis (CMA). Taking a lookdeals pending that most real estate agents should be
at assets, such as a swimming pool, bigger than normalable to shore with you.
living spaces, a fantastic view, adjacent city parks andA good rule of thumb before setting a price is to make
other attractions, the agent will begin to compare your20 comparisons of comparable properties within a
home with similar properties, called "comparables," thatone-mile radius of your house. Once completed you
have sold in the area within the last six months.can feel comfortable that the price you've picked is a
Typically, the agent is able to recommend a realisticgood gauge of the home's worth and won't
price range that will ensure you top dollar.discourage qualified buyers.
However, factors such as the amount of time neededBeing open and honest about what you see as the
to sell your home can alter the agent's pricehome's greatest strengths and biggest weaknesses
recommendation dramatically.will also help an agent get a better feel for how to
Typically, people should check with real estate officesbest evaluate (or assess) and market your home.
in the community to determine the typical duration thatThink of your home as if you were the buyer. If your
listings are on the market. Sales associates will explainhome is listed at the right price, you're well on your
that the marketing "norms" vary with prices andway to a speedy and fruitful sale.
properties. Based on this criteria, the agent feels