One of the ways a seller’s agent earns her commission is  by bringing prospective buyers to a client’s home.  Another way is by knowing the market and the area so well, that she advises clients to set the right asking price right from the start.  Understanding that there’s no formula, no calculator that spits out exactly the right number, finding just the right number the first time is an art that takes a combination of factors into account.

Of course the agent looks at data, such as the number of similar homes that sold in the same area, the number of days it takes similar homes to sell, how many other similar homes are for sale at a given time, and other measurable factors.  That’s all good.

But then there are intangibles, such as the shape the home is in, it’s layout, and whether it’s considered desirable or not.  All these factors determine the art of the sell. And a very important part of the art and science of selling a home in today’s market comes down to price.

The Object of the Seller’s Game
Remember, the seller’s agent is trying to get the highest possible price for her client’s property, within the shortest amount of time.

Why Price Plays Such an Important Role
When a home is priced too high, it sits on the market.  The fact that a home has been on the market for 30, 90, 200 days alone is enough to make it undesirable.  Shoppers will look at a home’s days on market (DOM) column without even seeing it and wonder what’s wrong with it, even if the answer is “nothing.”

What to do About it. And What Not to do About it

• Don’t test the market, and don’t throw numbers out to see which one sticks.
• Price reductions are nowhere nearly as effective as new listings.
• Withdrawing a house from the market or re-listing it draws attention to its having gone stale, or makes buyers wait to see how low they can make their offer.
• Do consider carefully the advice you receive from your agent, balanced against your own research and instinct.

Pricing right, right away can save you time, energy, and money down the road.  And consider that money you may have lost due to market conditions will translate to savings on your next home, even if you’re trading up or laterally.