Setting the Price
The price of any property is the major component of the reasons why it will or will not sell quickly. A home should be priced based on its condition and the current market. If a house is overpriced, it won’t sell. If it doesn’t sell and sits on the market, the listing becomes stale. If a house is overpriced “to see what the market” will bear with plans for a reduction later, regular price lowering will signal to buyers that it may still be too high.
Factors that affect the price of a home
Location: If your house is located in a desirable area that is in demand, it will bring a higher price than the same house in a less desirable area.
Condition: A house that has been well maintained and shows better will always sell for more than one that has been neglected and needs work.
Desirable amenities: If a house has amenities that are currently popular, it will bring a higher price.
Methods of setting the price
CMA (Comparative Market Analysis): A comparison of similar properties in the same general area that compares sold prices. Your Realtor can generate a CMA to help price your home.
Realtor Valuations: Some real estate firms use their own valuation method to further refine the fair market value of a property.
Remember that even if you find a buyer who will pay above what a house is worth, it will need to appraise for at least that amount if a loan is involved or the buyer will likely not be able to purchase the home.