1. Study the sold comparables (developing one or more CMAs as mentioned below) in order to see what homes an appraiser might use to appraise the home (important to know as many buyers choose to finance their purchase),
2. Construct several absorption rate charts to see statistically how long similar kinds and locations of homes in each price bracket are sitting on the market this year, and compare to your goals (how long you have to sell your home), and
3. Check what buyers can currently buy for your target price bracket, and position the home to stand out as a clear value among those choices.
4. Be willing to revisit sales stats and reposition your home in the market if the market is not responding to your home.
By doing this you will be ahead of the market curve and, if your home is an appealing, attractive product, it should sell within a month or so, if not a few days.
All of that aside, some home prices are set by sellers who need to meet their mortgage payoff. They may be willing to wait, seeking someone who will pay a higher price than might be expected, in order to avoid doing a short sale. Still other prices are set by a short sale or foreclosure bank who has done their own appraisal on the house and determined the price they will accept. These are just a few examples of what goes into home pricing.
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 â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ 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 will never 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