While sellers differ in the reasons they want to sell a home, they all have one thing in common - the goal is to sell their home, fast and for best price possible. Before you list your home for sale you have to establish the price.
Prior to this step, you need to have some idea of what the house is worth. This does not mean the amount you bought it for or how you have since upgraded your home. Rather, the worth of your home really depends upon the price a buyer will pay.
Professional opinion is essential
A Real Estate Professional can help you establish a fair "price".
The real estate market is always changing. This includes the entire picture and particular areas as well. Many factors determine the value of a home including type of market, market conditions, recent sales in your neighbourhood, condition of the home, your urgency to sell, financing, additional items (such as redecorating allowance, appliances), and outstanding repairs.
In a buyers market, the supply of homes on the market exceeds demand. In this case, buyers take their time in choosing a home, and when they negotiate they have more leverage.
In a seller's market, the number of potential buyers exceeds the supply of homes on the market. Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.
In a balanced market, the number of homes on the market is roughly equal to the demand. Homes sell within a reasonable time period. Prices generally remain stable. There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.
Price is very important when you are selling your home. A home that is overpriced could remain on the market too long. Price reductions may be necessary to bring it in line with current pricing. In the end, the seller may receive less than if the home was priced correctly.
If the price is too low, the home could be perceived as inferior. It could also linger on the market for an extended period of time. It may garner some attention. However, buyers may offer a price even less than the asking price, in anticipation of future problems with the home. On the other hand, some sellers may require a quick sale and accept of a lower price for a valid reason.
Also keep in mind that when you list with a Real Estate Professional, you are entering a legal relationship. When you sign the listing agreement, you give your agent the authority to put your home on the market for a specified time. If the house sells during this time, you must pay the Real Estate Professional the agreed commission. Additionally, if the homes sells shortly after the specified period in the contract, due to the Real Estate Professional's efforts, you must also pay the commission.