Selling Your Home

Setting the list price for your home involves evaluating various market conditions and different financial factors.

Your Five Star Realtor® will help you set your list price based on:

  • Pricing considerations
  • Comparable sales
  • Market conditions
  • Offering incentives
  • Estimating net proceeds

Pricing considerations
When determining the price for your home, you should be aware of a buyer's frame of mind. Consider the following pricing factors:

  1. If you set the price too high, your house won't be picked for viewing, even though it may be much nicer than other homes on the street. But compared to other houses for sale, your home simply looks too expensive to be considered.
  2. If you price too low, you'll short-change yourself. Your house will sell promptly but you may make less on the sale.

Using comparable sales
No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market. Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood . Your Five Star Realtor® can furnish this data on sales figures for those "comps". Once it is evaluated, a suggested listing price can be determined. Keep in mind, the decision about how much to list is always yours.

You can quickly consider market conditions by utilizing a Comparative Market Analysis. The (CMA) often includes pertinent information that will give you an estimate of the current real estate market. It can feature:


  1. The number of Days on the Market (DOM) for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months. Your selected Five Star Realtor® can tell you whether your area is currently a buyer's market or a seller's market.
  2. The average price per square footage. Offering a home that is within or below the average sale price will facilitate the speedy sale of your home.

Estimating net proceeds
Once you've been given an estimate of the market value by your Five Star Realtor®, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful as you start looking for another home to buy.

From the estimated sales price, you should subtract:

  1. Payoff figure on your present loan(s)
  2. Broker's commission
  3. Any prepayment penalty on your mortgage
  4. Attorney's fees, if any
  5. Unpaid property taxes

In addition, your Five Star agent can tell you what negotiations can decide which party pays for the following items:

  • Title insurance premium
  • Transfer taxes
  • Survey fees
  • Inspections and repairs for termites and the like
  • Recording fees
  • Homeowner Association transfer fees and document preparation
  • Home protection plan

How to Price Your Home

Five Things You Should Know:

  1. The current mortgage you owe is the strongest factor you must consider when selling your home. If your current note is $45,000, you should know up front that you need to decide on a price that is more than $45,000. Easy enough right?
  2. Put yourself in the shoes of the buyer. How much is a potential buyer willing to pay for your home? Buyers do not reflect on how much you paid for the home, how much time and money you've invested in your home's hardwood floors, fresh paint, lush landscaping or other improvements. The amount the buyer is willing to pay is the value of the home in an objective point of view.
  3. Invite at least three real estate agents to visit your home and give you their opinion of its likely selling price. Ask for a "comparative market analysis" (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren't sold. The on-the-market homes are the "competition" for your home. Ask the agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA.
  4. Calculate the price per square foot. The average price per square foot for homes in your neighborhood shouldn't be the only determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methods can be used to calculate square footage.
  5. Make the deal more attractive. Some buyers have needs that go beyond the bottom line. If you're willing to close escrow quickly, you'll attract buyers who want to move in right away. If you can offer seller-financing, your home will appeal to buyers who need to stretch their financial resources. A lease-option can help first-timers who need down payment assistance. The more creative and flexible you can be in meeting the buyer's needs, the more success you'll have in pricing your home to sell.