Joseph Houlihan, Managing Partner, Houlihan & O'Malley Real Estate Services

May 18, 2016:  Lowball or highball? Neither! Determining the asking price for your home can be extremely challenging.

On the one hand, you don't want to set a price that's too high, because it will discourage showings and serious offers from qualified, motivated buyers. On the other hand, setting the price too low will attract lots of interest but set the stage for offers and negotiations that might result in selling your home for less than its full market value.

Here are some tips that can help you determine the best asking price for your home.

1. Do your research. This should be done both online and in person. You can find out a lot about your market on local Realtors' websites and by going to open houses in your area, enabling you to compare your home in terms of location, size, features, and condition.

2. Consult with a real estate professional. In general, studying what has worked in your area--and what hasn't--will help you in strategically pricing, positioning, and staging your property so it will sell for top dollar within a reasonable time frame and with the least inconvenience to you. Your Realtor^® will typically provide you with a comparative market analysis (CMA), a document drawn from a local multiple listing service (MLS) database. The CMA offers pricing information, property details, and photos of homes similar to yours that recently sold (termed "comparables"), failed to sell, or are currently on the market in your area. The CMA will include the price or price range that our Realtor^® recommends for your listing.

3. Timing is everything. Price your home to sell when its market exposure and buyer interest are highest. Attracting qualified, motivated buyers who will pay top market value for your home is complex. That's because you're more likely to get the best price if you sell your home during a certain "golden window of opportunity" while your home is on the market. This can be during the spring months when your house shows best and families want to close on buying a home so their kids will be settled and ready for school in September. However, in winter, with fewer homes on the market, your home could stand out more and be appealing to serious buyers who need to buy right away.

4. Don't overprice. The strategy of overpricing your home when you list, thinking that you can reduce the price later, might seem logical at first. However, it seldom works. In fact, sellers who overprice their homes--even just 10 percent over the market value--often end up getting less than they would have gotten had they priced it realistically from the start. The reason is that fewer buyers will respond if they think your house is overpriced, and fewer Realtors^® will show your home, for the same reason. As a result, you'll get fewer (if any) serious offers, because buyers may consider doing so a waste of time.

5. Be strategic. Your realtor should help you price your home realistically from the start so that you can best leverage buyer interest. If you do so, you'll not only attract more buyers, you'll attract the right buyers: those who are qualified, motivated, and willing to pay top market value for you home.

Pictured here:  Joseph Houlihan, Managing Partner, Houlihan & O'Malley Real Estate Services.

Photo courtesy Houlihan & O'Malley Real Estate Services