Ever wonder how professional realtors come up with a recommended listing price for your home?

To begin, here are several factors that will not be considered when determining the listing price of your home:

1)    The price you are really hoping to get which includes your purchase price, plus all the improvements you’ve made, plus appreciation so you can realize an above average rate of return on your investment.

2)    The price you think it should be above market value so you can leave plenty of room for negotiation and the exchange of counter offers and then finally settle on what you think is the right price.

3)    The price you really need so you can net a certain amount of money based on what you owe plus the down payment you need to qualify for the loan on your next home.

4)    The price your neighbors told you they think it is worth.

5)    The price a web only based company said it was worth.

6)    The price a relative who is a realtor but lives out of the area told you it was worth.

7)    A number derived by use of a Ouija board and a deck of playing cards.

8)    Use of a dart board.


The listing price of your home should be based on all of the following factors:

1)    The result of a professional relationship with your realtor and the interactive dialog and communication between you.

2)    The actual sales prices of homes sold in your immediate area over the past 6 months with similar or identical square footage, location, upgrades, amenities and lot size.

3)    The general condition of your property and the amount of deferred maintenance that may exist.

4)    Review of the most recent termite inspection completed on your home to determine what action, if any, needs to be taken care of prior to the sale.

5)    Full disclosures that are specific to the property.


It is worth noting, that the actual sales price of your home will ultimately be determined by the buyer, not you or your realtor.