Your final price tweak should be to leave some wiggle room for negotiation. No seller wants to feel he left money on the table and no buyer wants to feel they got taken.  Leave some wiggle room in your price for negotiation and let everyone walk away from the sale happy.

Happy Rapid Sale!

Along about now, most sellers are trying to figure out how they can pay the least amount of money for the real estate agency commission.  While 4% agents are out there, think twice before you choose one over the standard 6%.  Discount real estate brokers and agents are very often chains that are not even located in your neighborhood.  This can work against you in several ways.  For one thing, real estate sales are all about agents who know the neighborhood inside out, backwards, forwards and sideways.  They know how to show your property as if they live there—pointing out all of the advantages in the neighborhood—precisely because they do live there.  You are not going to get that kind of showing ability from someone whose headquarters is in the Midwest when you’re in New York.  Discount brokers can backfire when your potential buyer tries to set up an appointment to see your house as well.  What typically happens is that instead of getting a local office number for the agent who is listing it, they get a 1-800 number asking for all of their contact information with a promise that someone will be in touch with them soon.  Usually, by the time they get around to figuring out which agent can show you the house, the potential buyer is already in the wind. Then too, the agent you work with is going to take on substantial cost for advertising your property, getting flyers and listing sheets printed, etc.  Bottom line then, a 4% agent is going to be subtracting those costs from his commission and is going to withhold essential marketing help accordingly.  Think about it.  In his or her shoes, you would too, so resolve to pay your agent what they’re worth, because they bring years of expertise and resources to the table that you need.

Finally, a neutral market is exactly what you think it is: A market that is more or less balanced in terms of buyers and inventory.  The market you’re in when you list your property should be a factor in your pricing strategy.  Essentially then, your property has three different prices.  One for a buyer’s market, one for a seller’s market and one for a neutral market.  All things being equal, with a list of true comps at $150,000, for example, and leaving a little wiggle room for negotiation, in a buyer’s market, you would price it at $149,900, but expect to sell at $145,000, while in a seller’s market you can ask more than the last comparable sale, up to perhaps $165,000.  And, in a neutral market, you might want to set your price at the last comparable sale and then adjust for market trends.  So, if the median sales price has edged upward at a rate of 1% per month, you’d be justified to ask for $154,500.

A Seller’s Market, on the other hand, (and may you be so lucky!) is one in which:

 Demand is higher;

 Less than six months inventory is currently on the market;

 Median sales prices are increasing;

 Shorter list times;

 Multiple offers;

 More buyers are purchasing

Basically, a Buyer’s Market is one in which:

 Demand is lower;

 Inventory is higher;

 Longer list times;

 Fewer offers;

 Price reductions;

 More than six months of inventory is on the market (more about this in a moment);

 Fewer buyers are purchasing

To calculate inventory accurately, use the following formula: Find the total number of active listings in your market last month. Then find the total of closed and sold transactions from last month. Divide the number of total listings by the number of total sales, which results in the number of months of inventory currently available in your market.

The real estate market, like every other financial market, is strictly governed by the laws of supply and demand. Less inventory and more buyers make for faster sales, while more inventory and fewer buyers make for slower sales. When you’re selling your home, external factors often count as much as the physical property itself. What follows are some other considerations to factor into your ideal price:

 Are you in a buyer’s market, a seller’s market or a neutral market?

 What time of year is it?

 What kind of real estate inventory is out there already?

 What are interest rates doing?

First, the differences between buyer’s, seller’s and neutral markets are very clearly defined.

Last, but not least, in the home improvements price tweaking category is to view your property the way your buyer’s home inspector will. Don’t wait until the home inspector gives your buyer the down and dirty of everything that needs to be repaired immediately. If your roof is about to go, own up to it and adjust your price. Similarly, if your Dutch Colonial’s foundation is beginning to crumble and the comp up the street is in mint or near-mint condition, own it now. It will look a lot better to your buyer to see you acknowledge what needs to be done and let them know the price has been adjusted accordingly, than to pray they don’t notice and have them feel betrayed when the building inspector spells it all out for them.

Other, less tangible factors that might differentiate your property price-wise abound. Look at the features that are the most attractive to potential buyers. Does your home feature tons of closet space? Offer all new, high-end kitchen appliances? Do you have central air, while the comps only have wall units? Is your home gas heated, while the comps are baseboard electric? Buyers will note all these costs of running and maintaining their next home as they look at your property so, again, learn to see your property with a buyer’s eyes. This may even be a time to make some quick, but cost-effective improvements, like removing dated wallpaper and replacing it with neutral paint, taking down heavy window treatments and replacing them with attractive blinds to open up the space, or converting an extra room to a home office, since home offices are much in demand. Even relatively minor tweaks to your property like these can increase the initial offers you receive. When you’ve spent a few hours or even weekend thinking like a buyer, you’ll be in a much better position to appraise the actual value of the improvements you’ve made with a cool head.

You’ve heard it forever and it’s true, “Location, location, location!” Be sure to factor the following location-related features into your prices. Are you on a higher floor, which is more desirable? Does the one block difference between your address and that of one of your comps put you in a better school district? (In some major cities, different sides of the same street can be in different school districts, so do your homework!) Do you have water views or over look the park? And, finally, is your property easily accessible? Are thruway entrances nearby if you commute? Are subway entrances nearby? All of these location-related features can up your price.