The Selling Price Of Your Home

The selling price of your home is difficult, and deciding to reduce the price is even harder. Here are some tips to price it right, and how to reduce it if necessary.

When you decide to sell your home, one of the most difficult things to do is to set the asking price. You don't want to be too high, but you don't want to be too low. And if you are too high, when do you reduce it, and by how much? Here are some tips in pricing your home.

1.) When setting your price, you need to take into consideration what other homes in the neighborhood have sold for and how they compare to yours. This is information your realtor can easily get for you. Once you have that information, decide how quickly you want to sell your home. If you don't need to move for six months, set it higher than what you might normally set it at. If you want or need to sell it quickly, set the price at a good median level with other homes in your neighborhood.

2.) So what if doesn't sell? What if you hardly get an offer on it in the time frame in which you expected that you would? You don't need to panic, but if you really need to get the house sold, then consider lowering your price.

Remember, a home is worth only what someone is willing to pay for it, not what you feel or believe it should sell for. Economic conditions such as interest rates will certainly factor into what buyers can afford and what they will pay.

3.) So how much do you lower it? Lowering it $1000 isn't going to do anything. What you want to do is lower it to a number that psychologically looks a lot lower than it may be. For example, if you are asking $159,900, you

may want to go to $154,900. You've gone from nearly $160,000 to the mid-$150s. $5000 certainly is a lot, but it can look like a lot more than that to a buyer. You don't necessarily need to drop your price by $5000, though.

Another example would be if you're asking $92,900 for your home. Lowering it to $89,900 would be a good price, because the buyers are now thinking $80,000-range rather than $90,000-range. You're only lowering it $3000, but it's a whole new price bracket to a lot of people.

4.) Don't lower it too much. If you lower your price by $10,000 right off the bat and drop it below the neighborhood's market value, you may do one of two things: either make a lot less than you could have because you lowered it too much, or scare away buyers because they may think there is something wrong with the house due to your anxiousness to sell it.

The key to pricing your house right is research and planning. If you research the other homes in the neighborhood and economic conditions, you should be able to figure out a good price. And if you do have to lower it, do it in small steps to keep it attractive to potential buyers.

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