Evaluating the Technique in Pricing Your Home 3 of 3

Your spouse says "Let's list at $90,000 and negotiate to $70,000, that way they'll think they are getting a great deal."

BAD IDEA! Buyers aren't idiots and they have shopped around. Insulting there intelligence is a sure-fire way of losing a sale.

Your dad says "Try listing at $90,000 for a few months and if nothing comes along lower the price"

BAD IDEA! People tend to know how long a house has been for sale, and neighbors tend to talk. If you realistically know that there is no chance of getting $90,000 for a $70,000 home why waste your time and money marketing it--it makes no sense.

People looking for a $90,000 home are not going to buy a $70,000 for $90,000. Be realistic and true to yourself.

Also keep in mind that the vast majority of homebuyers obtain mortgages. Mortgage companies will not lend more than their set loan-to-value ratio on a home and if your home does not appraise the sale is in jeopardy.

You say: “I will tell people $90,000 is just my asking price.”

BAD IDEA! The term “asking price” insinuates that you know you will not get that price and will accept less. It’s ineffective and will not work in your favor.

Market a few thousand dollars above your market value, if you feel you absolutely can not use the actual market value. This will allow you a little buffer to negotiate. Keep in mind that anybody can offer anything--don't feel insulted! You are in control of what you accept or reject on an offer.

For example, on a market value of $70,000 you could reasonable market your home at around $75,000. People shopping in the $70,000 range will look in the mid-to-upper 70’s and if your home is neatly nestled in that category--you will be sitting pretty in no time.

After much research and deliberation the asking price for your home has been determined...

Wow--hopefully with the information you have gathered in these past three articles you will have a better grasp of how pricing a home really works--what is important...and what is not important.

Have a great holiday season! See Ya Next Week!

Go To Page: 1 2