Seller's Note: Set the Price—Evaluate the Offer

When thinking about selling, the number one, absolute first thing that must be done is to set the asking price. You need to think about maximizing the bottom line - what will get you the largest net amount from the sale of your home. Once the price is set, a marketing plan and theme can be developed to maximize your bottom line.

The price received is always a junction of time on market and the amount asked. If you set a high price, the property will probably stay on the market longer than average unless you are in a "premium" area or building. But the price is not what you have decided your home has cost you or what you need to get out of the sale; it is purely what the market will bear - the "market value" of your home.

So how do you determine what the "market value" of your home is, and then how do you determine what is a fair asking price? The last sold property with similar amenities and in the same neighborhood is the market value of your house at the time of the sale of that property. In many cases an exact "like" property is not available, and a dollar value will be added for the pluses your home has over a similar property and value reduced for things your home doesn't have. This is similar to the process bank appraisers (who "appraise" how much the buyer may borrow towards the purchase of your home) will use to determine value.

In the slowing market we have today, if you set a higher than market value asking price for your property, you will have to wait for the market to catch up with your price. This is a distinct disadvantage, as when buyers see your property longer than the average days on market for similar properties, they will naturally begin to question what is wrong with the property. If your property is priced and marketed correctly, you should be able to attract the right buyer for your home in a timely manner.

So the price is right and now you have three offers on your home. How do you determine what is the best offer? With the help of your agent you can analyze not only the purchase price offered, but financing terms and an assessment of the likelihood the buyer can meet the financing terms; the conditions and terms of of those conditions that the purchase may depend on; and other current market criteria that may make one offer stronger than another.

As always, a professional, seasoned agent will be familiar with the current market and your locale and be able to present a thorough market analysis to help you set the right price. The agent will be prepared to help you prepare and present your home in its best light, make and implement a marketing plan approved by you, and will keep you apprised of all progress in whatever manner you have requested. And when those offers come in, the agent will be able to provide you with the information you need to make an informed decision as well as monitor the transaction through escrow to closing to insure all conditions of the contract are met.
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