The pricing of a house is a major component of the reasons why a house will--or will not--sell quickly. Although the pricing should not be dealt with lightly, some sellers have a tendency to put too much emphasis on the price and not enough on the condition, ending up with a house that is overpriced for its current condition.

When selling your house with an Agent, the Agent will have data to help set a price, as well as suggestions about a pricing strategy. If you are selling your house on your own, it is important that you gather relevant data when making a pricing decision. Many buyers will just naturally expect you to sell your house for less than those listed by Real Estate Agencies (you are, they will reason, saving the commission, so you should give it to them!) so having up-to-date data available will help to back up your selling price.

Start with the right price.

• If the house is overpriced, it won’t sell. If it doesn’t sell and sits on the market the listing quickly becomes stale (and then takes even longer to sell!)

• If you overprice the house with the intention of reducing the price later just to “see what the market will bear”, when the price of the house is lowered, it signals to buyers that it was (and still may be) overpriced. This strategy often backfires.

• If the house is under priced, it most likely will sell quickly, but you may have sold your self short.

Pricing can be affected by these factors.

• Location: you can’t get away from this one. If you house is located in a desirable area that is in demand, you will be able to get a higher price than the same house in a less desirable area.

• Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work.

• Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will bring a higher price.

Let an Agent help you with your price.

• There is no scientific method of setting a price when you are selling real estate, but there are a couple of methods that will take the guesswork (and the emotion) out of doing it. Note that neither of these are based on the “I just know what it is worth! Method.

• CMA (Comparable Market Analysis): A comparison of similar properties that takes into account size, condition and their listing and sold prices. An agent can develop this for you.

• Appraisal: An estimated valuation is placed specifically on your house by a professional appraiser.