Pricing strategy

Correct pricing is crucial to selling a home in any market. Particularly in slower times, it is even more important to price the home realistically based on the most up-to-date market statistics. Many home sellers are obsessed with the idea of over pricing their homes in order to leave "negotiating room" or because they "have to get" a certain value for their home.

The harsh truth is the market doesn't care how much you need from the sale. Period. A good real estate agent will give you a detailed analysis of your home's value based on recent closed sales. If the fair market value of your home is less than what you need you have options: not selling, selling and paying the difference at closing, readjusting your plans for your sale proceeds, etc. The one option you can't count on is a buyer giving you more than what the home is worth!

Of course, it is typical to list the home slightly above market value, but it is important that the seller be realistic in their mark up. In Chicago, the average home sells for about 4-5% less than list price. Therefore, homes that are obviously marked up higher than 5% are at risk for being ignored. By pricing close to market value, you actually increase your chances for showings, offers and, ultimately a quick sale at the best price a seller could reasonably expect.

M. Anthony Carr recently wrote in the online news service Realty Times:

"If you price right, actually you don't have to come down at all. Many of the houses in our market area are selling for the asking price. These are the houses belonging to sellers who dared to meet the buyers in the market instead of hoping the buyers would come up out of the market to make an offer.

Forget nudge room, fudge factor, and space for negotiation. Place the house on the market at a bold price -- then hold the line."

Truer words have rarely been spoken. You home sellers out there take heed!