Deb Espinoza's Real Estate BLOG

What’s my house worth? Market Value is a constantly moving target. The ups, and mostly downs, of the economy make setting the right asking price for your home an almost elusive art form. However, there is hope.

If there are not many comparable homes near yours that have sold in the past six month then it may make finding the right price for your home difficult. Comparable items commonly used to price a home are things like; location, square footage, amenities, and condition. That being said, you won't have much chance of getting a premium price on a cookie-cutter condo if identical units have sold for less.

There are reasons not to set your asking price too high. Here are three:

• Time management. Real-estate agents — yours and the buyers' — might not want to waste time with a home that's unlikely to sell. Though a higher price means a bigger commission, agents might figure they can move two or three homes in the time it would take to sell yours.
• Buyers beware. Buyers who like your house but pass on your property because of the price might find something else and close a deal before you drop your asking price to a level they'd accept.
• Money matters. Even if you get your full asking price, the time it takes to get it may cause you to miss out on the house you want to buy. You might have to settle for something that's not as suitable or end up spending more than you had planned.

Here’s how to avoid the over pricing mistake:

• Shop for an agent who is familiar with your community and comes with good references. Do your research - check out their sites, look for testimonials, ask about their credentials.
• Drive around to look at the comparable homes used to set your asking price, and look for others if necessary. Make sure the house's curb appeal matches yours. Keep in mind that a computer that shows comparable sales isn't likely to know that your home has a new kitchen and the others don't.
• Know your numbers.  A good agent will have a sense of how many buyers are looking. If you’re not getting your share, it's a sign you are reaching on the asking price. If dropping your price is inevitable, it's better to do it sooner rather than later.