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Hello all, first time in this part of the forums and there is some interesting reading for sure!

I am hoping to get advice on pricing our home which I hope to have on the market at the end of August.

Currently we have another house purchased and are in the process of fixing her up. Once ready we will declutter our current home by moving a lot of the furniture. We've also repainted in neutral colors and have a list of small and some not so small to do items.

BUT, once we are ready to sell I would be happy to get out of this home without having to pay anything to do so - I don't need to make a profit on it. Our home took a small hit to price over the last couple of years, but it would probably sell now for about what we paid for it. Houses in our neighborhood tend to sell within a couple of months. This home is really geared toward first time buyers - young families. It is a little over 1400 sqft and has 3 bedrooms.

So, my question is, do I price the house as low as I can right out of the gate knowing that I won't be able to haggel on price or give closing costs, or, do I go a little higher to allow for those things? If I go higher, what % should I factor in?

Thanks for reading and responding.

This message has been edited. Last edited by: Zemlya,

Zemlya, Great question and no easy answer!

Totally depends on the house you are selling and the market that will be interested in buying it. If it is a "starter" home where potential buyers might need assistance with closing costs, then price with a margin built in.

If not, price it rock bottom and tell your agent to inform all potential buyers (and their agents) that the price is based on immediate sale - no further concessions will be forth-coming. First full price offer gets it! Good Luck!

And one more thing on an ethical and moral level, if I do this I would be pricing the house about $10,000 less than the current comparables. I know that this will bring the appraisals for other houses in the area down once we sell. So that is playing on my mind too.

Thanks IR - It would be considered a starter home.

I think you should pad the price some so that when you get a lower offer you can come down in the price.

I understand that it will already be 10k lower than the competition but psychologically people want to feel as if they got "a good deal".

A decade ago when the bidding wars started this wasn't the case, but in this market it's hard for people to get past the "full price" idea.

Maybe a compromise...list it for 5k less than the competition and then you'll have another 5k wiggle room for negotiations.

Zem, what does your agent say?

I'm guessing, since you mentioned yours is a small "starter" house, the $10k you want to discount the house represents 7-10% percent of the home's market value (according to the comps). Is that correct?

If so, I don't think I'd automatically discount the house that much. It's probably not needed in order to encourage a quick sale.

As someone already asked - are you working with an agent? If so what was their suggestion.

Please take into consideration your selling expenses.

If you price the house too low you will scare some potential buyers off. Also, you might attract investors who are going to low ball. If using an agent sit down and review the comps. Do some what if's on the pricing and days on market.

I don't know the pricing in your market but a suggestion would be to price your house slightly lower than the competition or if the competition is a foreclosure or short sale - in line with them. It has been my experience that buyers are looking at more than just price.

When your house is ready to go on the market make sure it is in tip top condition. Priced right, clean and fresh with really strong photos will get more showings than drab and cheap.

This message has been edited. Last edited by: Charming,

I guess it would depend on how quickly you want to sell. We looked at comps, and put our house on the market at the low end. We ended up with multiple offers and got more than we had it on the market for, but our number one goal was selling quickly. I also wouldn't assume that I knew what appraisals would come out to (ok, at least we were really surprised at how low houses appraise for) - so I would definitely get your realtor to pull the comps and I would decide from that what the strategy is. In our neighborhood - all the houses that had priced with padding on it sat on the market, and when ours sold - they all dropped their prices. Now, they were never going to get what they were asking - and they didn't know at the time what our house sold for, but our house was REALLY pristine and we had really updated everything in the house so that it caught the attention of everyone - but I would really, really, really get your realtor's opinion on it. Not sure how houses are selling there, so you need to factor in how long you can handle two mortgages in your decision process..... Good luck!!!!

quote:

Originally posted by Zemlya:
And one more thing on an ethical and moral level, if I do this I would be pricing the house about $10,000 less than the current comparables. I know that this will bring the appraisals for other houses in the area down once we sell. So that is playing on my mind too.

Since you responded that this house would be considered a starter home, I would probably price it some 5-7K over the price you are willing to accept so you can offer to help with closing costs. As for the ethical/moral issues of bringing down the comparables?

I understand BUT, this is business and you are only a small part in the over-all scheme of the fair market place scheme - the price that a willing seller will accept from a willing buyer.

Your actions alone will not greatly influence comparables for an entire neighborhood; so price it where you are willing to sell while making allowances for the fact that "starter home" buyers might very well need some assistance to make the deal feasible. Good luck!