There is no easy answer. What buyers will pay depends on location (desirable and undesireable situations nearby), condition, special features, comparable sales of similar homes and costs of interest, repairs taxes. Your price will also depend on how many similar homes are on the market (your competition) and any truly unique desireable features.
If you have the data and the skill to analyze the above, you can set a price that will sell your home. If not, contact a realtor and be sure there is backup data to support the price recommendation. Beware of the agent who agrees that you can get more than the data shows; that could be a costly mistake in this falling market.
Three years ago, if you overprice your home, it meant you had to wait a few more months to get your price. Now the picture is completely different. An example: Your home “comps” out at $250,000, and the market is falling at about 10% per year. You price it at $265,000 hoping to get a little more and have some ‘bargaining room’. Six month later you drop the price to the original $250,000. . . but the property is now only worth $237,500, a 5% drop. If you need to sell, the least loss situation in a bad market is to list the house at $245,000 and sell it. You might even get multiple offers if it is truly a good buy. Ask yourself this question: Can I afford to be wrong if the property doesn’t sell?
