When a homeowner decides it’s time to sell their existing home, it can be for any number of possible reasons! Some are obvious, such as financial challenges, job relocation, changing personal needs, priorities, etc., while other motivations may be more personal, etc.! Regardless, however, in my more than 15 years as a licensed New York State real estate seller, I have learned and strongly believe in a primary initial decision that often has significant impacts, is the initial listing price, when the home is originally put on the market to sell. Basically, there are 5 basic strategies, for pricing, your house, for – sale. With that in mind, this article will briefly attempt to consider, examine, review, and discuss what they are and why it is important.

1. High end of the range: Especially in these times, where, we see, a combination of limited available inventory, near-record low mortgage interest rates, and a seller’s market, many homeowners seem to prefer to price their homes at the higher end of the range. In some cases, this strategy achieves its objectives, but, often, the risks, the houses, that do not finish, are sold. The use of this strategy should only be considered when the seller is willing to take some risk (expecting higher rewards) and is not under time pressure.

2. Medium, of the range: In most cases, the smartest approach is to price a home in the middle of the suggested range by preparing a professionally designed/created competitive market analysis (often referred to as a CMA). This usually creates strong demand from qualified potential buyers.

3. Lower third of the range: There can be several reasons for this approach to the listing price! Typically creating significant demand from qualified buyers and helping to sell the home, at the best price, in the shortest amount of time, with minimal hassle!

4. Prices above the high point: During certain real estate markets, such as the one we have been witnessing for several months now, we often see listing prices set above the high end of the indicated range! When prices rise rapidly, this can help get more money for the home, but since most buyers use a home loan to help finance/pay for the home, doing so risks home appraisals, which may not justify the desired loan size.

5. Below the lowest point: The establishment of an initial trading price, below market levels, may be indicated under certain circumstances/conditions. This approach can be effective when a seller wants a faster sale and believes that creating a so-called bidding war might make sense. It can also be a good approach, for marketing houses, with some unusual circumstances, needs, goals, and priorities!

Whichever strategy or approach is used, it is important to realize that there is a significant difference between listing and asking prices. Will you be an educated, informed and smarter home seller?