Setting Price for Your Home :
A seller always aims to get the best possible price and the most acceptable terms for his home. There are several factors which determine the price of the home for sale such as the location, current market situation, the present real estate trend based on demand and supply, and even the real estate season. When a home is put up for sale there occurs a lot of disparity with respect to the price of the home with the seller quoting one price and the prospective buyer ready to offer something lesser. Finally after a brief period of negotiation, they arrive at a point of agreement, which ultimately results in the finalization of the sale.
The seller must try to think from the buyer’s point of view. If the price is set too high, potential buyers will shy away from even viewing the house, although the house may be better than other homes in the vicinity. Similarly, if the price is set too low (which is usually done in the case of urgent need of finances), then the chances are very strong that your home will be sold promptly, but you will be depriving yourself of the actual cost of the property.
A Comparative Market Analysis helps in estimating a possible sales price for the house. A real estate agent can tell you whether the current market situation in your locality is a buyer’s market or a seller’s market. The seller can price the home a little over the actual price in a seller's market. In a buyer's market, seller can offer a bargain price to attract prospective buyers. The seller can also try offering incentives in order to attract potential buyers such as lowering the price, paying the closing costs (which the buyer is supposed to pay) or even offer a handsome bonus in addition to the commission to the broker.