When selling a home, establishing a reasonable and, ultimately, profitable listing price is perhaps the biggest challenge that a homeowner faces. A home priced too high may go unsold, but a home priced too low will result in a loss for the seller.

While determining the correct asking price may take some work, it will ultimately pay off. In fact, in a recent survey of Coldwell Banker real estate professionals, 79 percent agreed that homes in their market that are priced appropriately attract more buyers and move more quickly.

Before settling on an asking price, the professionals at Coldwell Banker Select Professionals recommend taking the following steps:

Choose the Right Sales Associate.  While many home sellers use a friend or relative's referral when selecting a sales associate, it is smart to interview a variety of prospective associates and invite them to show their listing presentations.  Pay attention to how they plan to market the home, and find out how many homes they (and their companies) listed in your local market in the past year as well as how many of them were sold.  Also, make certain they plan to list the home on the multiple listing service (MLS), and inquire about the breadth of the sales associate’s network of contacts.  Remember, the more prospective buyers a sales associate can attract, the better the chance for a successful sale.  Finally, because selling a home will require a lot of communication, the seller should ensure he or she connects with the sales associate’s personality. 

Do the Homework. Home sellers should work with a real estate sales associate to develop a written comparative market analysis (CMA). This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale in the neighborhood and other relevant information.

Take the Emotion Out of It. Sellers often take great pride in their homes, but it is important to set a priced based solely on factors like location, condition and size. A house in a secluded, exclusive area may be appealing to some buyers, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression (or have “curb appeal”)? Will it appeal to a growing family, or is it better suited for empty nesters? These are all things that need to be considered when pricing a home.

Determine If It Is a Buyer’s or Seller’s Market.  Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage.  Interest rates remain at historically low levels even as the economy shows signs of improving, allowing buyers to be in a good position to shoulder the “good” debt of homeownership.  A sales associate will know the inventory levels in the community.

Do the Math. Do not forget to figure in closing costs, legal fees and other selling expenses when determining the selling price.  The sales associate should be able to provide cost estimates, and negotiate with a potential buyer to ensure a fair sale price. 

Give It the Once Over. After working with a Lancaster PA real estate sales associate to get a CMA and considering all the other factors, the listing price will be set.  But there is one more step in trying to ensure that the house sells for that price, or more.  Do as much as possible to improve the home’s appearance: touch up the paint, fix leaks, seal any cracks, clean the home, eliminate clutter and rid the home of any pet odors. The house has only one chance to make a first impression.

Coldwell Banker Select Professionals serves the Lancaster PA real estate, York PA real estate, Lebanon PA real estate, Harrisburg PA real estate, Hershey PA real estate and Cumberland County real estate markets with professional Realtors, real estate agents and homes for sale.