Deciding on your asking price is probably the hardest part about putting your house on the market. The good news is that it's part of your agent's job to help you determine the right price to put on your listing agreement.
Factors to consider when you and your agent set your asking price:
Comparable properties. Your agent should do a comparative market analysis of similar properties sold in your area in recent months. You may not get an "apples to apples" match, but you can compare locations, lot sizes, square footage and features.
Market trends. You can start with a higher asking price in a hot vendor's market. In a buyer's market, you'll usually have to start lower. Your agent should know the current pulse of the market.
Your own needs. Are you merely "testing the waters" to see what the market will bring? Must you sell quickly? What's the rock-bottom, absolute lowest price you'll accept? Also keep in mind that you need to pay your agent's commission.
Haggling. Unless the market is "white hot," buyers will usually make an offer lower than your asking price to see how low you'll go. Be prepared to negotiate and set your asking price higher than the figure you're willing to accept. Your agent should be able to offer invaluable advice during the negotiation process.
Setting your asking price is a delicate balancing act. Ask too little and you risk "giving away" your home at a too-low price. Ask too much-especially in a soft market-and you can scare off potential buyers. Take your time as it's a vital first step toward getting the best possible price at closing.
For additional guidance in setting your asking price, see:
