Tips for Pricing Your Home

”Location, location, location” will only get a home seller so far. The single most dominant factor when it comes to a successful sale is the listed price for a property. Carefully consider the following advice when arriving at a price for your home. Most REALTORS® will offer pricing suggestions free of charge in the form of a Comparable Market Analysis, CMA. All you have to do is ask.

· Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities? This is where the REALTOR association Multiple Listing Service, MLS comes in very handy. It is an effective tool for comparison that is used by REALORS® and appraisers every day. Don’t call the local Board of REALTORS® office for this information. They won’t give it to you. You have to be a member to obtain it.

· Consider competition. How many other houses are for sale in your area? Are you competing against new homes? How much are they priced at? What do they have that your home doesn’t have and vice-versa? If your home has less than the others and is overpriced, you’re asking for trouble.

· Consider your contingencies. Do you have special concerns that would affect the price you'll receive? For example, do you want to be able to move in four months? Do you have asbestos in your basement? How about a leaky roof that will need replacement?

· Get an appraisal. For a few hundred dollars, a qualified appraiser will give you a certified estimate of your home's value. That will mean something to a bank as well as a potential purchaser. Be sure to ask for a market-value appraisal. To locate appraisers in your area, ask a REALTOR® for some recommendations or look in a phone book.

· Ask a lender. Since most buyers will need a mortgage, it's important that a home's sale price be in line with a lender's estimate of its value. Lenders see more appraisals come across their desks than most appraisers do. It may be the easiest way to cut to the chase.

· Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell. You may “WANT” $50,000 more than what everyone is recommending. Who doesn’t want more money? Truth is you will have to wait a very, very long time to get more. The heading on this paragraph should read, “Be realistic.”

· Know what you'll take. It's critical to know what price you'll accept before beginning a negotiation with a buyer. REALTORS® are subject to confidentiality to all parties so don’t be afraid to share this information. Sharing will help keep negotiations efficient.

(Portions reprinted by permission of National Association of REALTORS® )

Kevin Nordahl is a life-long resident of Door County, a REALTORŪ and a member of the Door County MLS. He is a Past President of the Door County Board of REALTORS® and a Senior Sales Consultant at Coldwell Banker Door County Horizons in Fish Creek. He may be reached online at knordahl@doorcountyrealestate.com or by phone at (920) 493-4004.

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