Is Your House Priced Right?

Are you in denial of the real estate market and don't want to price your property where it needs to be? This is a very price driven market. It may be time for a reality check if your home has had very few showings or you've lost a possible buyer to a competing and lower price home down the street. So how do you know if your house is priced right? Consider these things:

1. Not enough showings. It is likely overpriced if it doesn't get any showings the first few weeks on the market. A bigger sign is fliers are being taken from the box, there are a substantial number of hits of the website but buyers are not scheduling showings.
2. Some showings but no contract. Perhaps you're getting showings but there haven't been any offers. If this is the case you're close to the right price but not there yet. Ten showings and no offer or two weeks with no showings you are probably overpriced.
3. Similar homes are now selling for less. It is important to remain up to date with the current market. The price must be reviewed to ensure it is still priced correctly as the market changes. Monitor pending sales daily and make sure your home is competing well with those buyers are taking action on.
4. Repeated negative feedback. If you are receiving the same negative feedback from buyers that is a big sign the price should be adjusted. It may reveal that other homes in the same price range and area have an updated kitchen or bathrooms. The solution is either remodel or lower the price.
5. You've cut the price, but not enough. If you are going to cut the price a larger decrease will generate more interest than a little at a time. For example, a $200,000 should be cut by $10,000 if it isn't moving.

The first three weeks are critical. During this time your property will have it's most showings with the most potential, qualified buyers. Don't blow it by overpricing.

information taken from Wall Street Journal Sunday(6/8/08)