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Determining Your Target List Price

By Kimberley Kelly 30 Dec, 2011 Guest Blogs home selling, list price

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Calculating your list price is the hardest part of the selling process. There are many factors affecting price that need to be considered. Some of the strongest factors in determining a list price include:

Market Conditions: What is the market like in your area? Is it a buyer’s or seller’s market? What is the average list-to-sale price? These are all questions that need to be answered before you decide on a price.

Location: Is your home in a highly desirable area? Or do you live right next to a noisy highway? Location is one of the biggest factors in determining the list price. If you live in a very highly sought after location, you can probably start a little higher on your price.

Condition of Your Home: Condition is the one pricing factor you have the most control over. If your home is clean and in great shape, you will get more money for it. Plus it will sell much more quickly than other homes in your price range. The quicker your home sells, the closer you will get to your full asking price.

Amenities: What kind of amenities and upgrades do you have in your home? Granite countertops, hardwood floors, and swimming pools, can be very desirable features that will make your home sell faster, and for more money.  In some areas, however, these features are considered to be “standard”, so not having them can have the opposite effect on your price. Added amenities can also allow you to ask more for your home, and will be taken into consideration by an agent when they are helping you to determine the price of your home.

Lot Size: How big is your lot? Lot size is a huge factor in determining the price of your home. If you have two identical houses, with one being on a one-acre lot, and the other situated on a three-acre lot, they will sell for very different prices. Remember to check the lot size of comparable houses that have sold in your area.

How quickly do you need to sell:  Taking all of this into consideration, determining a fair target list price all comes down to how quickly you need to sell. If you need to move soon, you need to be very aggressive. Your home will need to be the best home at the best price in your price range.

Because of the changing nature of real estate, an agent is vital in helping you determine your asking price. If your price is too high, your home won’t sell, or may take a long time to sell. If it’s too low, you’ll lose out on valuable earned equity.

When determining a fair asking price, a realtor offers the advantage of an outsider’s point of view. Understanding that such factors as original purchase price, over-improvements, owner’s need for money, and owner’s personal attachment to the property shouldn’t be factored into the price, an agent can give you their honest opinion of what price a buyer would be willing to go if purchasing your property.

With all the resources to evaluate comparable home sales, a realtor can help you determine a target price that will catch attention, but still leave room for negotiation.

Article provided by Jolenta Averill a Madison real estate agent. If you’re interested in learning more about Jolenta, you can research her by visiting her Madison real estate blog or searching homes for sale in Madison on her website.