How To Price Your Home Like A Pro

When you're selling your home, setting an asking price is a bit like playing a round of The Price Is Right, where contestants use their shopping knowledge to zero in on an item's price without going over. Make sure your price is right with these expert tips on pricing your home to sell.

1. Don't Overprice
   Yes, it's tempting to maximize profit with a high asking price, but it's not that simple. Savvy buyers set a budget and do their homework. If your asking price bears no relation to the current market, they'll automatically remove your house from consideration without even seeing it.
2. Leave Emotion out of the Equation
   Most people develop an emotional attachment to their home, but buyers aren't going to pay for your memories. Keep sentiment in check and set an asking price based on your home's objective value.
3. Review Comparable Sales
   Comparable sales, usually referred to as "comps," will tell you the actual sale price of homes similar to yours with regard to square footage, age, floor plan, and other specific features. Stick to sales within the last three months for an accurate reading of the current market.
4. Study Expired Listings
   You can also gain valuable insight from homes that haven't sold. See if you spot any patterns in pricing vs. value that may have turned buyers away. 
5. Scout the Competition
   Take time to step into a buyer's shoes and view other comparable homes for sale. See how the asking prices match up with the features and benefits of the corresponding homes. 
6. Don't Look for Dollar-to-Dollar Returns
   Studies of the most common professional remodeling projects show that they bring just slightly more than 50 percent return on investment. Even if you make renovations for the express purpose of selling your home, don't expect to automatically layer the amount spent on top of the asking price.
7. Leverage Price Banding
   Price banding is a technique often used in real estate in which a buyer has an upper and lower limit, creating a range of prices they will consider. If asking prices for other homes are bunched up around certain bands, take advantage of the band with less competition.
8. Reduce the Price if Needed
   Sometimes, despite your best efforts to price fairly, you won't get a nibble. Reducing the price may smack of desperation, but approximately 60 percent of sellers drop their asking price at least once, so it can actually be a savvy move.
9. But Only Once
   If you do reduce the price, don't assume you can nibble away at it until you find the sweet spot. Interest in listed homes on the market for 21 days or more drops sharply. Consult your real estate agent, determine an appropriate amount, and cut once.
10. Be Flexible
    "A good negotiation happens when both parties walk away equally unhappy." That may be overstating the case, but when selling your home, it's not realistic to assume you'll get everything you're asking for. If you make a counteroffer to a buyer, your real estate agent can help you come up with creative alternatives to lowering your price. Consider paying part of the closing costs, buying down the loan, or even unrelated perks such as season tickets to a local sports team.

Selling your home doesn't have to be a long, drawn-out process. When the price is right, you'll be amazed at how quickly the offers come in.

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