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14 Things to Know About How to Price a House

The Family Handyman Logo By Nick Gerhardt of The Family Handyman | Slide 1 of 14: In real estate, the "99" strategy is nearly always employed. For instance, if a seller prices their home at $499K instead of $500K, the $1K they lose will cover some of the buyer's closing costs, but in the buyer's mind, they are paying $500K. In most cases, though, knocking off $1K to bring the price below a rounded figure doesn't make that much difference to a buyer or seller.
Nonetheless, there's a fair amount of psychology (and strategy) that goes into determining a home's asking price.
If you're a seller, you and your real estate agent should identify (and agree on) the approximate value of the property. Let's say you determine your home is worth around $500K, based on comparables of similar properties sold in your neighborhood and other market considerations.
The next step is to understand the price range for the list price. In this case, somewhere between $480K and $520K, depending on market conditions, competing properties, time of year or inventory. The price range typically goes a bit higher with more expensive properties; a home worth about $1 million might have a range of $950K to $1.05 million.
Once you know your home's value and have a price range in mind, it's time nail down the final "list" price.

How to Price Your Home: Know the '99' Strategy

In real estate, the "99" strategy is nearly always employed. For instance, if a seller prices their home at $499K instead of $500K, the $1K they lose will cover some of the buyer's closing costs, but in the buyer's mind, they are paying $500K. In most cases, though, knocking off $1K to bring the price below a rounded figure doesn't make that much difference to a buyer or seller.

Nonetheless, there's a fair amount of psychology (and strategy) that goes into determining a home's asking price.

If you're a seller, you and your real estate agent should identify (and agree on) the approximate value of the property. Let's say you determine your home is worth around $500K, based on comparables of similar properties sold in your neighborhood and other market considerations.

The next step is to understand the price range for the list price. In this case, somewhere between $480K and $520K, depending on market conditions, competing properties, time of year or inventory. The price range typically goes a bit higher with more expensive properties; a home worth about $1 million might have a range of $950K to $1.05 million.

Once you know your home's value and have a price range in mind, it's time nail down the final "list" price. Click or swipe through to see the rest of the process!

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