The Secrets to Pricing Your Home for Sale - By TerriAnn Ford

As hard as it is going to be to believe the value of your home is determined only by one factor, what a qualified buyer is willing to pay for it. No more and no less. The insurance replacement value, the appraised value, the tax assessed value and any of those other values mean very little if anything. Without a buyer your house has no value in the marketplace. It does not matter what you think the home is worth. It's what a reasonable buyer will think the home is worth that will ultimately determine if it sells.

As the seller you're likely thinking - any buyer would want to pay as little as possible for your home. That's true. The buyer also knows that you the seller have no obligation to sell your home at any price. Therefore to purchase your home, the buyer will have to make an offer that you can't or won't refuse.

Many sellers fall into the trap of the mistaken idea that they can put their home on the market at an inflated price and the market will eventually come to them. That's incorrect. Just as you the seller are under no obligation to sell at any price, buyers are under no obligation to buy a particular home. No amount of marketing, websites, signage or open houses will motivate a buyer to purchase an overpriced home. This is because they can buy your neighbour's home for less. Now to one of the most important points to consider in pricing your property. Price versus time.

You as seller need to determine, which is more important price or time. This factor actually controls every sellers decision to sell and every buyer's need to purchase. Most buyers and sellers want both. Successful sellers understand that the real estate agents job is to provide marketing expert advice and negotiating services. In the final say, the agent doesn't own the property and won't make final decisions on pricing. The seller does and the sellers asking price will determine how slowly or quickly home will sell. Successful sellers take ownership of their pricing decisions by making a clear decision about which of these factors carries more weight - selling quickly or selling for top dollar.

If you try to get both fast timing and top dollar you will end up disappointed. I can't tell you how many overpriced homes I have seen languish on the market even when it's a hot sellers market. Today's Buyer cannot be duped.

A successful seller knows that he has to think like a buyer. Remember too that the buyer has his own real estate professional and that professional will have his or her finger on the pulse of the market. Before a buyer places any offer on your property they and their agent will have fully researched, to determine what they should be expected to pay for your home. So take your time, talk it over with your agent, and properly price your home before putting it on the market. You will be glad you did.