How to set the right sale price

Price is a function of supply and demand. If there is no one around to buy houses, it doesn't matter that you're giving your house away. On the other hand, if everyone wants your house, the competition will drive the price up. Since time is money, the trick is to sell fast and get top dollar at the same time. If you set the price too low, you'll probably sell it fast but you'll be giving away money. If you set the price too high, it will take longer to attract a buyer, and your costs of ownership (interest, taxes and insurance) might exceed the additional money that you were planning on making by setting the price high. Or worse, you might never attract a buyer and end up lowering your price and paying carrying costs.

So how do you set the right price based on supply and demand without hiring an economist? One answer is "comps." Properties that are "comparable" to yours should be examined to determine what they have sold for (price), how many are currently on the market (supply), and how fast they are selling (demand). As a Realtor, I have access to a wealth of comparable data and market statistics that I would be happy to share with you to determine the price that will be most profitable for you.

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For advice on legal matters please contact your attorney. This information was prepared in collaboration with Kahn & Kahn Attorneys at Law.