Although you hear over and over again the adage "location, location, location" when referring to selling real estate, the one true way a property gets sold is by pricing it right.

This is not meant to imply that a low price is a good price. In fact, pricing a property too low not only cheats yourself of additional profit but it can also be as detrimental to the sale process as pricing it too high. Appropriate pricing means being realistic by taking into account the property's location, condition and other factors surrounding the property. Since the market is an ever-changing place, values tend to rise and fall. It is therefore possible that you may have to sell during a time period when the market is not as favorable as when you purchased the property.

The hard truth is that a buyer does not care how much you have paid for your property, how much you owe, how much you have spent on improvements and/or repairs, how much you need to get out of the sale, or how much emotional value you place on your property. The costs of repairs are a necessity of owning your own property, a fact most buyers are reluctant to pay extra for. Although many minor improvements may not significantly increase your home's market value, if done tastefully and neutrally enough, they will undoubtedly help your property sell more quickly. Sellers must therefore distinguish between updating (modernizing) and upgrading (improving the quality of) fixtures and appliances. For most people, a house is the single largest investment ever undertaken and most sellers expect to make some profit on its sale. Unfortunately, however, how much you need to get from the sale means very little to a potential buyer. Finally, emotional context is not easily appreciated by strangers. Although positive emotions such as the birth of a child or a marriage, or negative emotions such as the death of a loved one or a divorce, while owning the property, may influence the value a seller places on the property, they are of little consequence to a buyer. As hard as it may be, you should not allow emotion, positive or negative, to play a role in the pricing of your property.

A Realtor and an appraiser have experience in pricing properties by evaluating similar properties that have sold in your area. They focus and place emphasis on the sold properties more than active properties because the "solds" are the successful deals. It is beneficial, however, to review the active and pending properties because this provides information on your potential competition.

Utilizing and understanding how homes are priced properly will help you to be more realistic in your own expectations when you are ready to sell. Not only do Realtors and appraisers compare properties but even more importantly, so do buyers. Buyers have become very educated and informed on the process too. When they go looking for the right home, they begin to get a feel for when homes are priced realistically, and when they are not. Don't let the right buyer pass you by because you were not listening to the market's current idea of the value of your property. Ask your Realtor to take you to see one or two of your immediate competition, as this will help you appreciate the condition of your property and allow you to make the same comparisons of price and quality buyers are making. In fact, converting your own mindset from a seller?s perspective to a buyer's perspective is a very effective way to look at the pricing process objectively. The most important person who can help you interpret what the market is telling consumers is your Realtor listen strongly to the information and advice presented to you. A Realtor literally sees hundreds of properties and can offer invaluable advice to assist you in the proper pricing and presentation of your home.

Pricing your home right is the largest and most important part of selling your home getting this right will ensure the sale of your property in a timely fashion. Good luck!

PLEASE NOTE: This information is not intended to be legal advice. Your licensed real estate agent cannot give you legal advice. If you have any questions about your legal rights or obligations, you should consult with an attorney.