Pricing Your Home

Pricing your home is both an art and a science. Achieving the optimal price is the result of both objective research into comparable properties and a gut feeling about your property and the current market.

The right price should:

  • Attract buyers
  • Allow you to earn the most money possible
  • Help you sell as quickly as possible

The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it's important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you in the end.

The Importance of Proper Pricing

  • Faster sale and less inconvenience
  • Exposure to more buyers
  • Increases realtor response
  • Generates more advertising/sign calls
  • Attracts higher offers
  • Means more money to seller
  • Avoids being "shopworn"

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing.

Common Reasons for Overpricing

  • Over-improvement
  • Need
  • Purchasing in higher-priced area
  • Original purchase price too high
  • Lack of factual data
  • Bargaining room
  • Move isn't necessary
  • Assessed value
  • Emotional attachment
  • Opinion of family and neighbors

Dangers of Overpricing

  • Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have alreadywaned.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
  • Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

The Role of a Real Estate Agent in Pricing

  • Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMAis performed by comparing previously sold homes in the area, and currently active homes to know your competition.
  • There is no "exact price" for real estate
  • We don't tell you what we think your home is "worth".
  • The market determines value…together we determine the price.
  • You determine the price based on the factors you control:
        - Marketing time
        - Financing alternatives provided
        - Condition
        - Exposure method
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.
  • Help to determine offering incentives.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.

Local HOT spots to check out!
Thursday, October 29, 2020 TCU campus

Gotta Check It Out Within walking distance for Ryan Place residents is the beautiful TCU campus. It is certainly worth a visit. Using thoughtful master planning going back decades, TCU has invested more than $1 billion in new and renovated ... 

Read More
Sunday, October 25, 2020 West Seventh Street

Gotta Check It Out No conversation about the Cultural District would be complete without talking about West Seventh Street. A well-loved hotspot for happy hours and dinner with friends, West Seventh Street has a way of attracting an energetic ... 

Read More
Wednesday, October 21, 2020 Tillery Park Fort Worth Texas

Gotta Check It Out Tillery Park is a gem hidden on Berkeley Place, just off Forest Park. The street ends in a small shady parking lot. This park is very close to the Fort Worth Zoo. It is a Leathers & Associates playground built in 2007 by ... 

Read More
Sunday, October 18, 2020 Mira Vista Country Club - Fort Worth Texas

Gotta Check It Out Mira Vista Country Club Mira Vista has one of the best country clubs around. This isn’t one of those snooty, puttin’ on airs kinda country clubs. Mira Vista Country Club is family and community oriented. Heck, they ... 

Read More
Saturday, October 3, 2020 Log Cabin Village in Fort Worth, Texas

Gotta Check It Out In today’s world, you hold the world in your hands. You can sometimes forget that life used to be a lot slower. It can be therapeutic to experience how Americans back in the 1800s got through their days. It’s ... 

Read More