Home Buying in Clinton>Question Details

Na, Home Seller in Clinton, CT

What are the markers for setting the price on a house?

Asked by Na, Clinton, CT Fri Aug 7, 2009

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The best way to determine a fair asking price is to identify a recently sold home identical to yours in every way and located in the same community.

We all know that this is next to impossible but the process becomes one of finding the closest matches possible. Square footage, number of bedrooms & baths, lot size, garage and pool, location, etc. should be your considerations.

In today's market, it's very important to price your home accurately so that it will appraise in accordance with lender standards and your contract price.

Hope this is helpful.

Bill
0 votes Thank Flag Link Tue Jun 11, 2013
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers might not see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Tue Jun 11, 2013
When determining a list price for a home a realtor will want to do a CMA. This is a comparative market analysis, and will compare your home to other homes in your area that are similar. As a realtor, I compare apples to apples when comparing homes. Colonials with colonials, capes with capes. We look for square footage, number of bedrooms, bathrooms etc. We include in our CMA reports active listings (presently on the market), and sold listings to get a good idea on where to price your property. Each property is unique and different, and these factors are also taken into consideration when pricing your home. A home of similar size and number of bedrooms with more land will usually be priced higher than a similar home on less land. Location is also a huge determining factor that will also effect the list price of a home. Is it a waterfront home, or located within walking distance to town? The are factors that will increase a list price of a home because buyers are willing to pay more for them.
0 votes Thank Flag Link Tue Jun 11, 2013
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