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Your decision about the “asking price” of your home – the
price your Realtor will put in the Listing Agreement – is one of the most
important you will make in the selling process.
If you price your home too low, you may cheat yourself out of money you could
have earned on the sale. Ironically, some potential buyers may not even view
your property if the price is too low – on the assumption there must be
something wrong with the home.
If you set your price too high, potential purchasers may pass it by in favour
of more reasonably priced homes. Others may figure you won’t accept a
large decrease in price, so they won’t bother to make an offer. A few
may even be reluctant to offer a much lower price for fear of embarrassing you
or themselves.
Setting too high a price can also leave your home on the market for a long
time, which could give it a bad reputation among potential buyers. If you then
decide to drop the price, you may end up selling your home for less than had
you priced it reasonably in the first place. The reason? Having your home on
the market for a long time can weaken your negotiating position, since buyers
may assume you are now under pressure to sell and will bargain accordingly.
The object, then is to choose a price that is neither too low nor too high.
But doing so is a complex procedure involving a comprehensive understanding
of the market and an objective opinion on your home’s saleability. Realtors
are experienced in doing this research and providing the guidance you’ll
need to make the best possible decision.
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