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The Price Is Right: Tips to Determine the Correct Listing Price

If you’re thinking of listing your home in 2020, one of your biggest concerns will be the sale price. Using comparable past sales from the local market is the best way to determine the listing price, and subsequently the sale price, of your home. But interpreting the data is not precise because homes, even in the most cookie-cutter of neighborhoods, have unique features.

Simply put, the sale price range will be where there is an overlap in desire. That means the market will bear the price at which a seller’s willing to sell and a buyer’s willing to buy, which is not usually a precise number. If, for instance, a buyer is willing to pay up to $350,000, and a seller is willing to sell for as low as $340,000, then the overlap in desire is from $340,000 to $350,000. Each side will try to work out the best deal, but that range is generally acceptable. Thinking in these terms can help you better understand how to price your home.

Sometimes sellers want to test a higher listing price for a few weeks, but the greatest number of viewers will see your property at the beginning and then viewership declines significantly. In the first few weeks or even days of a listing, depending on the pace of your marketplace, your new listing will attract all the buyers who have been looking but have not yet found a home. That’s the pent-up demand. After that interest wears off, you’ll have to court new lookers or reinvigorate those who have already looked. Sometimes that means they will look again if their situation changes or if there’s an opportunity to make a deal. So, pricing your property correctly from the start, while the most eyes are on it, means getting and keeping the most attention and the best chance to sell your home.

Taking a look at your competition is a great way to hone in on your listing price. Checking out nearby open houses or asking your agent to set up private showings can help you confirm or adjust the listing price you’re considering. Your agent can point out the features buyer clients generally value and show how your home compares.

The best resource for pricing your home will be your agent. The MLS data your agent can provide combined with his or her actual experience viewing the comparable homes that have sold and feedback from showing properties to many buyers in the market are invaluable in pricing your home to sell.