How to List Your Home Properly

When selling a home, establishing a reasonable and, ultimately, profitable listing price is perhaps the biggest challenge that a homeowner faces. A home priced too high may go unsold, but a home priced too low will result in a loss for the seller.

Before settling on an asking price, take  the following steps:

Choose the Right Sales Associate.  While many home sellers use a friend or relative’s referral when selecting a sales associate, it is smart to interview prospective associates and invite them to show their listing presentations.  Pay attention to how they plan to market the home, and find out how many homes they (and their companies) listed in your local market in the past year as well as how many of them were sold.  Finally, because selling a home will require a lot of communication, the seller should ensure he or she connects with the sales associate’s personality. 

Do the Homework. Home sellers should work with a real estate sales associate to develop a written comparative market analysis (CMA). This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale in the neighborhood and other relevant information. Based on the information gathered, a sales associate will provide his or her professional estimation of a legitimate selling price.

Take the Emotion Out of It. Sellers often take great pride in their homes, but it is important to set a priced based solely on factors like location, condition and size. A house in a secluded area may be appealing to some buyers, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression? Will it appeal to a growing family, or is it better suited for empty nesters? These are all things that need to be considered when pricing a home.

Determine If It Is a Buyer’s or Seller’s Market.  Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage. 

Do the Math. Do not forget to figure in closing costs, legal fees and other selling expenses when determining the selling price.  The sales associate should be able to provide cost estimates, and negotiate with a potential buyer to ensure a fair sale price. 

Give It the Once Over. After working with a real estate sales associate to get a CMA and considering all the other factors, the listing price will be set.  But there is one more step in trying to ensure that the house sells for that price, or more.  Do as much as possible to improve the home’s appearance: touch up the paint, fix leaks, seal any cracks, clean the home, eliminate clutter and rid the home of any pet odors. The house has only one chance to make a first impression.