When your house hits the market, you must remember your house is competing with other houses in the market. If a buyer has come through and doesn't give you an offer, it doesn't mean they stop looking. Most of these buyers go on to purchase a home in the next few months. Today's buyer's are willing to buy a home that suits their needs that is priced at fair market value. Fair Market Value is the price agreed upon and in which the money and property exchange hands between a buyer and seller. Fair market Value is a price in which the general buying public would be willing to pay. Both buyer and seller must be willing and informed to buy/sell the piece of real estate in a arms length transaction. A transaction where neither party is desperate to sell or buy and where the property is given reasonable exposure to the open market. The Benefits of Proper Pricing
The Dangers of "Can't We Just Try"
Understanding the Effects of the Market Trends Comparables Reasons for Overpricing Selecting a Real Estate Agent Home Evaluation Form
The Benefits of Proper Pricing Sell your Home Faster- If your home sells faster, you save on carrying costs, mortgage payments and other costs  of owning a home.
Less Inconvenience - Selling your home and moving equires a lot of energy it takes to prepare for showings, keep the home it tip top showing condition, make child care arrangements and alter your lifestyle. Pricing yoru home properly reduces the hassles and agravation that come with selling your home
Your Home is Exposed to More Buyers- At market value, you open your home up to more people who can afford the price.
Increased Salesperson Response- When salespeople are excited about a home and its price, they make special efforts to contact all their potential buyers.
Better Response from Advertising Ad calls and sign calls to Real Estate Agents turn into showings when price is not a deterrent.
Attracts higher offers- When a home is priced right, buyers are less likely to offer low out of fear of losing a good
home.
MORE in the Seller's Pocket- If a home is priced right, the excitement of the market produces higher sale prices. You NET more, both in terms of actual sale price and in less carrying costs. The Dangers of "Can't We Just Try" “Can’t we just try?” is a question that is always asked. The problem is you waste valuable time sitting on the market overpriced. Peak activity is in the first 3-7 weeks.
Think about it. The first showings will be from Agents with their clients. These buyers have  rejected every other house in the marketplace and are waiting for the next new house to come along. These initial buyers are tired and they have felt some pain. They may have lost offers because they under bid, over a home inspection issue or a multitude of other reasons. They are ready to buy and they are the buyers that will offer you the most for your house. As your property sits on the market you’ve lost the attention of the best buyers. Now you get the buyers that are just entering the marketplace and the bargain shoppers. Less competition nets you less money.
Understanding the Effects of the Market Trends Real estate values are constantly moving. It is very important to pay attention to house values. $400,000 a year ago could only be worth $380,000 today. It is very important to know the trend of values in your market, especially in a declining market. 
In a sellers market, where houses are selling like hotcakes and inventory is low, if you overprice your home, the market will quickly catch up with the overinflated price of the home. Represented by the orange arrow in the graph.
In a buyer’s market, with declining home prices and tons of inventory, if you list your home at fair market value or overprice , even a little, the market continues to decline, as your homes list price becomes more and more over-inflated. Represented by the blue arrow in the graph. Eventually, after your house has stagnated on the market, you have to underprice your home to generate the interest in your home. Comparables 
Expireds: Unattainable Price In a normal market 25-30% of the homes will expire on the market unsold. In today’s soft real estate market it can be up to 40-50%. The list price of these home represent a price that is unattainable in the market place. Notice that the average square foot price, asking price and days on market are the highest of all the catagories.
For Sale: High end of Price For sale prices are asking prices only no final price has been determined. Some of these homes will sell, some will expire. For sale prices indicate the possible top end of the pricing range. Notice how the average square foot price, asking price and days on market represents the middle of the market.
Solds: Lower end of range Sold’s are the actual selling price and represent the price range where you will most likely sell your home. Notice they also have the lowest averages of all the categories. In a down market you should price your home slightly below fair market value and sold represent the middle to high end of the range. In an appreciating market, sold represent the low end of the pricing range.
Reasons for Overpricing Over Improvement- Improvements should be made for enjoyment, not just resale. You cannot add an item to a
home, based on personal taste, use it, then expect a buyer to pay the original cost. Need- A homeowner’s need for more money does not increase the value of your home. Buying in a Higher Priced Area-Values are location specific. High values in your final destination do not increase the value of the existing home. Original Purchase Price High- We have been seeing a lot of this recently. Chances are you paid market value. It’s not a price that was too high, but a real estate market is dynamic and is in a valley.
Lack factual data- Base your opinion of value on recent documented sale prices, use common sense and have the agents verify their information. Bargaining Room- Buyers may offer low, but they will do that at ANY price. It is easier to negotiate up to fair
market value than to an over inflated price. Move isn’t necessary-Even if the move isn’t urgent, it is important to price correctly to preserve your marketing
opportunities when the move becomes urgent. Don't let your house become stagnant on the market it will cause buyer's to wonder what is wrong with your home.
Selecting a Real Estate Agent Indicated Sales Price?
Services and Marketing Plan? A Real Estate Agent has no
control over the market,
only the marketing plan.
Never select a Real Estate Agent
based on price.
Select a Real Estate Agent based on criteria specific to the company, the competence of the person, and their marketing plan. Never base your choice on a promised sale price. A Real Estate Agent has no control over your local market conditions. It would be wiser to select a Real Estate Agent first, then discuss price. Don’t encourage or allow agents to “bid up” (in the industry we call it buying the listing) the price to get your listing. True professionals will give you candid feedback and factual information so you can price within the market. I specializes in the marketing of residential homes in Merrimack Valley Massachusetts, and Middlesex County including the communities of Andover, Billerica, Boxford,Burlington, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading,Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury If you thinking of selling your home I would love to have the opprotunity to consult with you. Of course the initial consultation is of no obligation to you.
For information on short sales visit Massachusetts Short Sales |