Don't make this mistake when selling your home

Guest Commentary
April 6, 2008

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What can you do to ensure your home sells quickly while maximizing your bottom line? Location and condition of your home are of course important, but sellers often overlook the importance of properly setting the initial offering price. Research shows that initial pricing is one of the major components that dictate why a home will or will not sell quickly and at the best price.

In general, a home receives the most interest and activity from prospective buyers and other Realtors during its first two weeks on the market. If you purposefully overprice your house to "see what the market does," numerous potential buyers and agents may move your property to the bottom of their list. As a result, many potential buyers and agents never take the time to view your property.

Worse, overpriced homes tend to sit on the market and the listing quickly becomes stale. Sellers are then forced to take action to generate attention, and often the only option is to substantially slash the asking price. Potential buyers, knowing the home has been on the market for an extended period of time, feel no sense of urgency. In fact, they may be more inclined to bring a "lowball" offer, just to see if the seller will take it. Now the seller has lost both time and money.

Remember, the purpose in pricing your home is to get it sold. Pricing your home competitively at the onset of the listing period will generally result in better offers in terms of dollars and contingencies. Further, the opportunity to obtain a satisfactory offer quickly also is improved because you have maximized the number of potential buyers and agents who will take the time to see your home.

A great way to ensure you have priced your home right is to enlist the aid of a local Realtor. He or she will be happy to look at your home and provide you with a comparable market analysis (known as CMA) and most will provide this service at no charge. The CMA will show you how your home compares to similar properties in the same general area that have sold. A CMA also will show you how the competition is priced and what homes are currently under contract. A Realtor will evaluate all this information, weighing some factors greater than others, and then suggest a list price.

Pricing your home to sell is not an exact science and price adjustments may be necessary. But pricing it competitively at the beginning will give you your best chance of selling your home quickly and for the best price.

Mia Clancy is a broker associate with New Horizon and Associates, Inc., and is the first vice president of the Greeley Area Realtor Association.