Putting a price on your home can be an emotional roller coaster. You want to get the highest price that you can for your home, but what will happen if you price your home too high for the current market?
When you list your home for sale, you are putting your property in competition with every other house on the market. Because you are competing with other sellers, if you price your house too high, it will likely just sit without being sold, and could actually help sell other homes you are competing with. If your property is not getting any offers at a higher list price, your broker is going to suggest that you bring the listing price down to current market prices where similar properties are actually selling. When a property sits on the market without selling, buyers start to wonder why it isn’t sold.
You need to find out what the recent sales are for homes in your area. You also need to consider the types of sales that are influencing current market prices. Is your home in the same area that has a high number of foreclosure, reo or short sales? Such sales (and foreclosures) can have a negative impact on home prices.
Before making your home pricing decision, make sure to get a current market analysis from a real estate professional who is knowledgable, and one where this is their full-time business, to see what is happening in your area.
When making an offer, try to be “aggressively realistic”. You certainly want to save money, but you also want to give the seller a reason to sell to you…after all, you want the house!