Assessing your situation...

The first step in effectively pricing your property for sales has nothing to do with your property and everything to do with the outside factors. Here's a quick list of considerations:
  1. What is the level of market demand from qualified buyers, for your kind of property, in your area?
  2. How many other properties are close to you geographically that offer similar amenities?
  3. How long do you have before you "have to" move?
  4. Are there any other pressures on you to sell?
While these factors have nothing to do with the intrinsic value of your property, they might well impact what you can reasonably expect to receive from an offeror  based on your specific transactional needs. These considerations will impact things like, the urgency of sale, maximum potential buyers likely to be found within your sale-time-window, and the  terms you are willing to accept in an offer. Later in the negotiation you will see that every contract concession you need and each one you are willing to give, will impact the offer price in some way.

Price analysis...

There are many different terms used for determining a likely sale price for a property. You may see any of the following terms, Broker Opinion of Value (BOV), Broker Price Opinion (BPO), Competitive Market Analysis (CMA). Regardless of the name, most of these techniques revolve around taking an objective and quantified look at recent sales of similar properties and applying expert judgement about the likely price of the subject property based on those recent sales.


Things to avoid...

Active listing prices are often attractive baits in the "wrong pricing" of homes, but consideration of prices on properties that have not settled, should be avoided at all cost. The only prices that mean anything are those that were actually paid by a purchaser already. So, the only considered prices are those of close transactions. These must often be adjusted down due to seller cash concessions, paid to the buyer at the settlement table. Unless each of these guidelines are followed the result is often a property that never receives an offer, or worse, receives an offer only to loose it later because the lender appraised value is too low for them to make the loan to the buyer.

Every pricing situation is slightly different, and a professional agent or broker is usually required to correctly identify the appropriate listing price range of most properties. However, in general, pricing is based on the comparison between all that the subject property offers in amenities and condition, as compared to all that was offered in the most recent comparable sales, of comparable properties, in the closest proximity to your property.


A word on agents and brokers...

As with most things in real estate, you will find that a transparent and high-trust relationship is one of the most fundamental keys to success of selling your home. You must be comfortable that your agent is professional and on your side. Invest a little time in talking with the agent(s) and broker(s) you interview to list your home. The more comfortable you are about their ability and focus on your success, the less stressed your entire sales process will be. Once you have found that "right agent/broker", the most important thing you can do is follow the counsel they offer you. They are motivated to help you achieve success. If you team with the right agent/broker, you will achieve that success.

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