In this market should one be really careful how you price your home?

Asked by Leanne, Atlanta, GA Sun Jan 11, 2009

we have a great 2yr old home (like new). Moving due to job we must sell! My concern is that b/c it is a buyers market so many people are giving very low offers...that even if you list lower you run the risk of never getting close to your fair asking price. I hear people say you will get in a bidding war but just seems risky to do so. So do i list a little bit higher and take a really low offer into account?.(to make one feel they are getting a deal or do we list low and cross our fingers people will bid fairly and drive the offer up.
The fair market value of our house is 305,900.
ask 300,000 and hope you dont get offers of 260K or list for 320,00 and hope for an offer of 280K

So confused??? and a limited time to sell!! approx 5mos

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Bill Eckler, Agent, Venice, FL
Tue Jan 13, 2009

It is our opinion that the sellers number one concern should be accurate pricing for their home. Today more than ever sellers need to be very much aware because of the "double headed monster" competition.....Short sales and foreclosures.

A very large portion of today's buyers are exploring these options making them your main competition. It may not be practical to match their prices but sellers need to be are of their competition. And this definitely includes these real estate demons.

Good luck
1 vote
Michael Pres…, , Worcester County, MA
Sun Jan 11, 2009
Yes be careful how you list as it should be reflective of what is fair market value in your area. Where are you getting your idea on fair market value? From a realtor? Zillow ? Assessment? Friends?

The best idea is to get a couple of realtors in your area to come in and give you a CMA (comparative market analysis), which will give you an idea of what these realtors think your home is worth in todays marketplace in your area. Find your fit with a realtor you trust to put in on the market with a pricing plan( a pricing plan is what your realtor thinks the price should be to get it to move within a certain time frame price x should sell it in 30 days...price y in 45 days....etc....

Find out about a marketing plan (how is your house marketed to potential buyers), It is an internet world for most initial buyers- what will the internet presence be? What other houses in your area are currently for sale, and how does your house stack up against it? Place your home competitively in your marketplace, and buyers will come and it they determine it is at Fair market, you will see showings and interest.

A good realtor will listen to your needs then price and market it effectively for you.

Good Luck

Good luck in selling your home.
1 vote
J R, , New York, NY
Sun Jan 11, 2009
I'd be careful in ANY market about the price I listed my home at, and in a falling market, listing a little HIGHER is the worst thing you can do.
1 vote
Angela Dolber, Agent, Whitinsville, MA
Sun Jan 11, 2009
Hi Leanne - that's a good question and it all depends on what is going on in your marketplace. In the Fitchburg, MA area, colonial homes that are built in 2005 and newer, have 3-4 bdrms and 2000sf or more have sold in the past 6 months for anywhere between $275,000 and $315,000. The days on market range from 62 days (at the $273,000 sold price) to 159 days (the home with the $315,000 sold price), so this is something you need to think about as well. Typically the homes in the higher price range take longer to sell in this economy, so pricing your house for a quicker sale (since you are relocating) is probably your best bet. No need to give it away, but taking the middle road for price is probably your best bet to get your house sold in the timeframe needed (plus, remember, the quicker your house sells, the one less mortgage payment you have on it, saving you money that way as well). Good luck with the sale of your home!
1 vote
Mary Lyons, , Coventry, RI
Sun Jan 11, 2009
Hi Leanne,

In my experience the best course of action in this market is to price at or slightly below market value for a quick sale. With this approach the value should be obvious to any serious buyer, be prepared to negotiate and expect low offers but come down a little then be firm. How much is a little? Well, if you are working with a qualifed realtor they should be able to provide you with statistics on sales prices to asking price in your local market, use that as a guide.

Best of luck to you
1 vote
Catherine "C…, Agent, Metuchen, NJ
Sun Jan 24, 2010
Hi Leanne,
You might want to be careful not to provide more personal information on a public forum. Don't forget that local buyer's agent might be reading this post...You do not want to tell them that you have a limited time to sell...
0 votes
J R, , New York, NY
Sun Jan 24, 2010
If I had a listing asking 300,000 I'd be thrilled to get any offer. I welcome offers. Any offer is an opportunity to enter into negotions. Here are some offers I've had on homes: on a 225,000 list: 220,000. On a 249,000 list: 240,000. On a 649,000 home: 635,000. The key was pricing them right. Buyers are smart: they know what a house is worth. Buyers know what at 300,000 house looks like. If one comes on at 305,900 and it's a 300,000 house, they'll offer full or almost full price, and probably more than one buyer will make an offer.
0 votes
Tom Lynch, Agent, Great Barrington, MA
Sat Jan 23, 2010

You have some good suggestions regarding price... but just a reminder that marketing is key, as well as how your house shows. Be sure to consider how the realtor you choose will market your property. Ask your realtor to provide you with a list of where and how they will market your property. How does the marketing of one agency compare to another? And ask the realtors you interview to provide you with an honest evaluation of how your house shows. Do walls need to be touched up, or re-painted? Carpeting cleaned? Is there too much clutter?

With the right price, a smart and enthusiastic realtor, and a top notch marketing plan, your house should sell.

Best of luck.

Tom Lynch
Associate Broker
Berkshire Property Agents
Great Barrington, Massachusetts 01230
0 votes
Leslie Storrs, Agent, Leominster, MA
Fri Jan 22, 2010
In any market, but especially now, the key to a successful sale is pricing the house correctly. I understand the seller perspective of "can't we just try it a little higher - we can always come down", but most of the time this approach ends up getting the seller LESS than if it the house was properly priced to begin with!
FIrst step is to have a Realtor come to evaluate your home and give you a CMA. It's also a helpful tool to have a "Net sheet" showing a range of sale prices to determine what you will take away from the transaction after the expenses. If I can be of help in any way, feel free to contact me directly!

Leslie DelMonaco
Century 21 Realty Team
0 votes
Rhonda Burge…, , Smyrna, TN
Sun Jan 11, 2009
I would say to price your home aggressively, not high. You will eliminate a lot of buyers if you initially list too high. I know you can always adjust the price but the best time to attract buyers is when you first put your home on the market. Being a new listing is an experience that you cannot get back. Remember the saying about first impressions. Price it under the market value by about 5-10% to attract the most buyers. I good buyer's agent will recognize a correctly priced home and they will show your listing to their clients.

Question: Where are you getting the fair market value from? Is this from an appraisal? the internet like zillow or something? or from a Realtor who is familiar with your area? I would consult a Realtor who is familiar with the area and who has access to the info on the most recent sales in your area (within the last 60 days as the markets tend to change rather quickly) and the short-sales and foreclosures. These properties need to be included in your comparison to find the true market value of your home.
0 votes
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