My House is Worth What?

By Liz Gray, FrontDoor.com | Published: 4/07/2009

Part 4: Name your price

Take a deep breath -- your Price is Right moment is here. You can listen to the chanting crowd of friends and family, agents and appraisers, but ultimately the price to put on the "for sale" sign lies with you. Consider this advice before making your decision:

Take emotion out of the equation. Your home has sentimental value to you, which counts in your family album but not necessarily on the listing sheet. Facts, not feelings, should take charge when determining the price.

Pricing too high will probably cost you. If your home has lost some of its value, it can be difficult to face reality when pricing your home. But don't get mad when your real estate expert suggests a low number. It could actually cost you more to price it too high.

One of Thompson's clients insisted on listing at $250,000 when the market value was about $225,000. More than a year later, the "sellers have been chasing the price ever since, about every three months, they drop the price, but they're still four or five months behind," he says. Buyers will be able to sense your desperation after you've lowered the price a few times, and will likely make a lowball offer.

Forget the home prices from three years ago. Forget what the house down the street sold for three years ago. If you have to sell in a down market, you're going to sell for less than your neighbors did when the market was booming.

Don't price to wait it out. "People say, 'We're not in a hurry, we can stay on the market for a little while -- so we can ask a higher price and wait it out.' In this market, prices are dropping, not increasing, so you may actually lose money by waiting," says DeMolen.

Consider variable pricing. Variable pricing, or picking a range of prices, allows your home to be exposed to a larger number of buyers. If you choose a range from $149,000 to $169,000, you'll attract buyers at both the high and low ends for viewings. However, the range can be confusing to some buyers. "Buyers say 'if it's $250,000 or $200,000, I'll give you $200,000," cautions Weintraub. "In the end, all prices are variable. You're throwing out your fishing line and hoping a bunch of fish come fight over it." Consider the options with your agent.

Adjust as necessary. No matter how much research you back up your price with, your home is only worth what buyers will pay for it. "If buyers aren't biting, find out why," recommends Weintraub. "Your agent should get in touch with all the agents showing the property and ask them what people thought about it and what they thought of the price. Find out what they didn't like and change it."

Get it right and claim your reward. If you price your home right for the market, it should sell within three months. But instead of getting a chance to spin the giant prize wheel or picking up a cruise for two to Oahu, you get another kind of reward: A chance to move on to the next chapter of your life. And hey, if you price it perfectly, a trip to Oahu might not be out of the question, either.

<< Part 3: Fix Before You List I My House is Worth What? >>

<< Pricing Solutions for 4 Selling Scenarios I Pricing Mistakes and How to Avoid Them >>

GO TO: FrontDoor's Guide to Pricing Your Home

More on FrontDoor:

• Home Seller's Guide
• Selling Smart: How to Sell Your House in a Buyer's Market
• Selling Dos and Don'ts
• 10 Ways to Increase the Value of Your Home
• For Sale By Owner Guide

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