Why Pricing a Home Correctly is Essential

One part art, one part science, determining the correct selling price of your home is no easy task. You want your home to move, but you also want to get as much money as you can out of the transaction.

While a Real Estate agent telling a seller an unrealistic value for their home is as old as the whole business of selling Real Estate, it becomes more prevalent when you see markets showing some signs of improvement.

I have written numerous articles on how to determine real estate market value, so today I thought I would try a fresh approach on this critically important topic by interviewing one of the top agents in the US.

Pricing a home correctly is hard work. You want to get the most money for your house, but you also want it to sell. There is a fine line between too high and too low and it's not always an easy balance to find. This is why really successful Realtors are so sought after.

For most people a home is their most prized possession. Homes cost a great deal of money and they are often the place where lifetime memories are made. These realities are undeniable - but they can negatively impact your ability to sell your house if you let emotion take over your logical side.

Pricing a home is one of the most challenging things a Realtor has to do - part art, part science. It requires you to consider a great number of variables to determine a competitive price, far more than most people realize. So it is no surprise that the everyday home seller would struggle with this task.

When you begin looking at the listings for homes - whether you are a buyer or a seller - you may come across a type of pricing structure you have never seen before. This pricing strategy is known as value range pricing or value range marketing. This type of pricing typically confuses the general public.

Pricing a home in a way that will encourage a timely sale is quite challenging for home sellers, and often for Realtors. There are numerous studies that indicate the longer a home remains on the market, the less money it will fetch when it finally does sell.

If you're selling your home, you need to understand that pricing your home correctly from the beginning is absolutely critical. The most common reason a home doesn't sell is because it is overpriced. Overpricing a home can create damaging effects, period.

The reason why you should not overprice a home is simple. It won't sell! In addition to not selling when you overprice your property the odds are stacked against you that it will sell for what it should if priced properly from day one!

If you're putting your home on the market, especially if you live in an area where prices are going up and buyers are competing for homes, you may be tempted to try listing it at a high price just to see if you can get it. Don't do it.

The single most important factor to consider when selling a house is pricing the house correctly; it's picking the right price tag: how much your house is worth. You don't want to overprice the house because you will lose the freshness of the home's appeal after the first two to three weeks of showings.

Overpricing a home is one of the biggest blunders in Real Estate. In fact when you overprice your home it is one of the hardest things to recover from even if you end up reducing later on down the road.

We hear this statement very often, "I need to price my home higher for negotiating room." On first thought, this logic may make sense, but for real estate sales, it doesn't really work that way. In real estate, the very first step to negotiating, is getting people to come see your home.

Is price per square foot important? This is a question that lots of buyers and sellers want to know. In real estate, as with many things in life, the easiest solutions to a problem are not always the best solutions. Take calculating the value of a home for sale.

See the top 6 myths about pricing a home for sale. Overpricing a home is the worst thing you can do when selling real estate.

When should I reduce the price of my home is a question lots of people ask their real estate agent. Find out when to reduce your home price with these tips.