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How to price your home for sale

Maskot/Getty Images/Maskot

Our homes represent so much to us: goals achieved, renovation complete, family started. It's hard to remove our emotions from the transaction. But in the end, the only thing that matters is what buyers are willing to pay. And they don't share your fond memories.

Setting the price to sell your home is no easy task. Create your listing price using a combination of the below factors:

  • Current market conditions.
  • Competing properties nearby.
  • Time of year.
  • Inventory in your community.
  • Approximate value of the home based on similar properties sold recently in your neighborhood.

7 tips for creating your list price

  1. Work with an expert. Rely on advice from a real estate professional who knows your community. If an agent doesn't already represent you, find one through the Home Rewards Program.
  2. Play the numbers game. There's a reason price tags tend to end in "9" no matter what you're buying. Psychology plays a role. A home priced at $299,900 seems more affordable than one selling for $300,000.
  3. Understand herd mentality. You want as many buyers as possible to be interested in your home because excitement about the listing won't last long. Pricing it on the lower end of the value range of comparable properties in the neighborhood may generate multiple showings.
  4. Price for online searches. Buyers will likely search for certain criteria when shopping for a home, including price. Select a number that will appear within a reasonable range in more searches.
  5. Consider the season. High demand months result in more showings, while the opposite is true other times of the year. The key is to know trends in your geographic area.
  6. Leave room for negotiation. Set a price that gives you and the buyer a chance for counter offers.
  7. React quickly. Be prepared to adjust the price if your home isn't getting showings or you have received feedback that the price is perceived too high.