How to price a property to generate interest, momentum, and better offers:
1. If a home is priced just below market, the excitement of the market produces more competition between buyers and higher sales prices.

2. Calls to realtors turn into showings when price is excellent.

3. When salespeople are excited about a home and its price, they make special efforts to contact all of their potential buyers.

4. At market value, you open your home up to more people who can afford it. More potential buyers, means more potential offers.

5. When a home is priced right, buyers fear they might lose out on a good home, so they are less likely to make lowball offers.

6. Keep in mind that statistics show that generally the first offer is the best offer.

7. When your home sells faster, you save carrying costs, mortgage payments and other ownership costs.

8. During the first four weeks your home is on the market, the most eyes are on your property—therefore it is essential to price your home right. Homes priced at market-value will ensure solid interest from brokers and buyers.  See the chart at the bottom of the article.

The downside to overpricing
9. If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.

10. Don’t overprice. If you do, it may become necessary to drop the price, often below market value, to compete with new, competitively priced listings. Once you start lowering the price, other agents and astute buyers wait for further price reductions which further reduces interest and momentum.

11. The most common mistake sellers make in overpricing is to use other ‘Listed Prices’ of properties to determine their sales price. A listed price is not the market value of a home. It is the ‘asking’ price of another seller and may have no relation to the actual market value.

determining the right selling price
12. To help determine a selling price, use Comparative Market Analysis or CMA. CMAs give the sold price of comparable homes in your neighborhood. Your realtor can get you this valuable information.

No Realtor, no friend, no neighbor can set the market value for your home.
Only the “Market” sets the price for a home.

Post from: Hawaii Real Estate Reporter

12 Tips for Pricing Your House to Sell