Sussex County Association of REALTORS^®
Bi-Monthly Real Estate Article
The Sussex Countian and Milford Beacon

One of the questions REALTORS^® are frequently asked is, “How do I determine a price for my house?”

If you're thinking about selling your house, one of the first things you'll need to do is determine the selling price. There are many pricing factors to consider.

Of course you want to make money, but price your house too high and prospective buyers won't even view it. Even the best house in the neighborhood won't attract buyers if it seems too expensive to be considered.

On the other hand, if you price your house too low, you'll shortchange yourself. Sure your house might sell quickly, but you'll make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.

Several factors determine the price you set to sell your house.

Location can make a difference. If your house is located in a high-demand area, it will fetch a higher price than the same house in a less desirable area.

The condition of your house is another major factor. A well-maintained house shows better and will almost always sell for more than a house that has been neglected and needs work.

Another factor in pricing your house for sale is whether or not you have desirable amenities. Houses with amenities that are popular in the marketplace, whether it's off-street parking, a fireplace, a screened-in porch, a two-car garage, a modern kitchen or a finished basement, will most likely bring a higher price that those without.

But even if your house is in mint condition in a great location with the most desired amenities, buyers will still compare other houses on the market. So before you set your selling price, review comparable sales. Comparable sales are a record of what buyers have been willing to pay recently for a house similar to yours in a neighborhood like yours. Work with your REALTOR^® to access this public information and have him or her summarize the data to create a comparative market analysis (CMA). In addition to information about recent house sales in your area, the data will also include information on neighboring houses that haven't sold and their list prices to suggest a listing price for your home.

A CMA is provided as a service by your REALTOR^® and will probably include properties currently listed for sale and currently pending sale. Another component of the CMA is the market condition. Market conditions include things like days on the market (DOM) for each comparable house sold, whether home prices in your area are trending up or down and if homes are selling quickly or staying on the market for long periods of time. All of these details can have an impact on your selling price. Your REALTOR^® can help you understand whether your area is currently experiencing a buyer's market or a seller's market.

Ultimately the decision about pricing is up to you, but working with a professional REALTOR^® will give you a better chance at getting it right.

Good luck!

The Sussex County Association of REALTORS^® (www.scaor.com) is one of four professional REALTOR^® trade associations in Delaware for individuals involved in the real estate industry and allied industries and firms. With membership of over 1,300 REALTORS^® from more than 100 real estate offices in Sussex County and surrounding areas, SCAOR provides products, programs and services for its members. SCAOR is located at 23407 Park Avenue in Georgetown and can be reached at (302) 855-2300.