Anyone who has ever bought or sold a home has probably realized that proper pricing is one of the most crucial yet intangible components of a successful transaction. Pricing isn’t always a matter of logic, mathematics or what the seller “needs” to net but a combination of these and many other factors which can vary greatly from day to day.
One fact that never varies is that the eventual selling price is always what the buyer is willing to pay and what the seller is willing to accept. Once the sale is recorded, that price becomes a comparable that all other similar properties will be measured against for about 6 months, give or take. Recent sales prices are also a valuable resource to help start the pricing strategy process.
Market time is extremely important to consider as well. Properties sold within the average market time for your area are considered “well priced” while those taking much longer to sell warrant a serious re-evaluation. If “condition” factors, i.e., décor, color scheme or other fixable situations need re-doing, DO THEM! The price may not be the problem, just the presentation! However, factors out of the control of the seller such as excess road noise, less than desirable view, etc., may necessitate a price reduction even if similar properties nearby without these issues have sold for more. After all, no matter what the seller’s opinion of his or her home’s price is, there can be no sale until a buyer willing to pay a price acceptable to the seller materializes!
Originally posted on Anna Novikoff's blog.