Brenda- There is a lot of good advice here..If a friend or co-worker has told you your home is priced too low you may want to consider the fact that they may not be not current on real estate prices in your neighborhood. The one thing you can count on is that if your home is priced under the market and it is on the MLS and has been advertised you would have been swamped with offers even in a slow market. If you are on the MLS and the home has been exposed to the public and you don't have offers then you might want to reconsider raising the price.

Hi Brenda, I agree with many of the other agent's comments but I would like to offer other things to think about. First of all yes it is possible to raise the price of a home once it has been listed with an agent. What you did not mention is information which can help you determine what your listing price should be. I know you didn't ask but here are a few items to consider. Is your home one of the largest in the area, have you asked your agent for a list of all the sold and pending listings for the last few months? Why do you believe it is underpriced? What is the average selling time of those homes in your area? These are just a few of the many things you must answer in determing price. And back to your original question although you can do it agents will be suspicious of the increase but you can alwasys explain why you are increasing the price. Hopefully, it is because you have had so many full price offers you are confident the price is to low.
Good luck to you Brenda.
Jeff Fox, Broker

I love brandon's answer because it is dead on. If you truly underpriced your home then you'd be in the "eveyone is a buyer" area and would have gotten multiple offers. If your home is truly undervalued then it's not being presented as such. Maybe there is not enough information, condition, ect. There's several reasons to think it's underpriced. Pricing the home is one of the most important steps.

You can raise the price, but most MLS' record that kind of data. Buyers with agents will want to know if you made improvements or if it was a mistake.

You should only consider this option, if you have received a multitude of full price offers, which is some states would make you obligated to sell your home.

Bottomline: Check with the professional Realtor

Brenda,

If you have truly underpriced your house you would not of had time to create this question.

The only person that will dictate what your home is worth is the buyer who will purchase the home. You can set the price wherever you would like!

That is where you should be highly attentive to your Realtors advise. They should be able to show you current market trends including absorption rates, supply and demand ratios, LP/SP ratios, etc.. All of this information should be used to create an effective pricing strategy! Pricing is dynamic and will always change as market conditions alter. Given the performance of bonds and their adverse affects in current interest rates, I would be as competitive with your pricing as you can possibly be. If it has not sold by now you are not underpriced.

Brenda, Thank you for your question.
I don't know where Albertville is located, however I am assuming logic is universal...

There are actually three prices that you should know about:
1. The first price is Wholesale. That is the price that an investor will pay to purchase your property, make some upgrades, and flip it for a profit. The normal rule of thumb for investers is that they want to purchase it for at least ten percent UNDER MARKET. The good news is that they can many time close quickly, so if you need to get out fast, they can do that..for a price.

The next price is what people driving around your neighorhood, looking at homes like yours, who know the local market, are serious, and want to buy NOW will pay. That's Market Price.

Lastly, there is YOUR PRICE. The price at which your home sells is based on many factors, including, but not limited to:
The amount of TIME you have to sell, taking into account the local market conditions and where you need to be and WHEN you need to be there. In any endeavor...TIME is MONEY.

Next is condition: is your property a "cream puff" or does it have what we term "deferred maintenance"? That goes from curb appeal to the place where you store your trash cans. Clean as a whistle is the bare minimum standard. A good Realor should be able to help you get your home in 'showing condtion'. Of course, if you don't mind discounting, then don't bother with bringing your home up to standard.

Once you've read this far, you look at a list of homes that are similar to yours, in most places that is called the CMA.

However, we need to analyse the CMA in terms of YOUR MARKET.
Are prices going up or down?
Is Market Time (DaysOn Market) increasing or decreasing?
What proportion of homes are going into escrow (that is the "pending ratio) compared to those that come onto the market each month?
What percent of homes expire (do not sell). The ratio of homes that sell versus expire is the "Expired listing ratio". Is that trending up or down?
What is the List price (the amount you want ot raise) versus Sale price (the amount people pay)? Usually the LP vs SP ratio is above 90%. In my market it's 96% for May, meaning that if the property is listed at $100, the price the buyers pay is $96.
A good agent will have a "better than average LP/SP Ratio...meaning if the market is 86% (meaning homes are overpriced by 4%), hopefully your agent is closer to 100%. A home price within 2 1/2 percent of selling price (that means within 5%), will sell for more dollars than one that is way overpriced, or under priced.

Statistical analysis has consistently shown the sellers receive the closest LP/SP ratio during the first 30 days on the market.

You know how you look at a listing that has a lot of market time (say one listed for 30 days, and one for six months). People wonder "what's wrong with it?" if it has more than average market time. So if they make an offer, it's usually "low ball".

The other major question is "where are you moving?" And "when do you need to be there?" Why is that important?

Let's say you were going to sell your home for $200,000 in city A, and then move to city B. Assuming that the values are the same (they are not, usually), no big deal right?

Are interest rates going up, or down? If your property sat on the market for six months while your are "waitng for your price", if interest rates go up (which they are right now), that means TWO things:
A) There will be fewer buyers who can affrord to purchase your home...so you will sell it for less.
B) Your will pay more for your new home.

I remember vividly selling our first home. It sold in one week. My sister in law, a reloation director for Boeing, reminded me "Keith, if it sold within the first thirty days it was priced right"

And Debi was sooo right. Think back when you were buying. Did you look at 'overpriced' homes? nope. Did you try to buy more than your could afford? No, because you were already streching too far, right?

Brenda, good luck to you. Don't be greedy. Know the time/value of money. Don't look at just your home sale...until it's CLOSED escrow. Once is CLOSED, then you can by (usually...anyway).

Not knowing your circumstances this response may be over doing it...I hope not.
Keith

It is truly your house and if you think that Realtor (R) mislead you in the price during their presentation then by all means raise the asking price. Code of Ethics and Standard of Practice 1-3

Of course! It doesn't always look good, unless there's a great reason why you did it - for example, if the home was under construction and the listed price reflected that, and now it's completed - but even pricing errors can be corrected. Your Realtor should not object to doing this. But YOU, as the seller, control the price. Your Realtor controls the exposure your property gets. But NO ONE controls the market, and that is ultimately what has the greatest impact on your price. Buyers will tell you if your price is too high - or too low! Did your Realtor do a Competitive Market Analysis (CMA) for your property? This will give you comparable properties to yours, and at what price those properties sold. I like to give sellers a CMA showing not only sold properties, but also active listings so they can see what their property is competing against. If you have those things, and they point to your price being too low, then ask for a price change. Good luck!