Determining You Asking Price When You're Selling Your Home In A Seller's Market

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If you're thinking that just because you are selling your home in a seller's market you can ask whatever price you would like for it, you're absolutely right. You CAN ask for whatever price you want. But that does not mean you're going to get it. Many owners make the mistake of thinking that there are ten buyers lined up in front of every home that's for sale and all of them are just hoping you'll pick THEM to sell your house to. But the truth is when you are selling your home in a seller's market you have got to be just as reasonable concerning your asking price as you do at any other time.

The simplest definition of a seller's market is that there are more buyers looking for homes than there are homes for sale. This does have an effect on the economy, the perceived value of your home, and the price you can ask for it. But your home still has to be appraised at or near your asking price if you expect anyone to be able to get the financing to buy it and banks typically won't lend more than 80% of the appraised value of the property.

And with the recent changes within the economy these restrictions get tighter each day. That already means that anyone who desires to buy your home is going to have to come up with a considerable down payment on their own just to make up the difference between the appraised value and the market value. You may have to sit on that house for a while if you are asking for even more than market value.

One mistake that homeowners make when trying to sell in a seller's market often occurs during the first week the home is on the market. All of a sudden there are Real Estate agents bringing people through their home two or three times a day and there's a flurry of activity. By the end of the first week there's an offer on the table that's not quite what the buyer is asking for but the agent definitely feels it's negotiable. And then the seller turns the offer down and tells the agent they need to raise the asking price! They've obviously priced it too low. Look at all of these people who've been here and it's only been on the market for a week.

But what that seller fails to realize is that that flurry of activity is only going to last one or two weeks because the house has just come on the market and everyone wants to see it. But that doesn't mean that everyone wants to pay his asking price and they certainly won't want to look at it again if he raises the price even more. If the first offer you receive on your home is within reason and has room for negotiation, it's often in the sellers best interest to work with it and get the house sold. You may be selling in a seller's market but people are still only going to pay what your house is worth.

About the Author:
Looking to find the best deal on What makes a good investment property, then visit www.HomeServiceBlog.com to find the best advice on Buying foreclosures for you.



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