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Pricing one's home more difficult in current economy

November 8, 2010 - More homesellers are having to put their moving plans on hold, finding the stark reality that others consumers are facing - pricing one's home is not a simple task.

Today's economy and an era of reluctant buyers has made pricing a home for sale more difficult for many home sellers. Newsday reports that many home sellers are operating on the old pricing model, by looking at comparable home sales in recent months and setting their prices 10 to 20 percent higher. That won't quite work in today's unstable market, real estate agents told the source, because home values tend to fluctuate much more often these days. That could mean a seller's home is worth much less than what it was when they originally bought it.

"You need to price within a few percentage points of what your house is worth. You can't just put down a price and see whether you get a bite," Jonathan Miller, of New York appraisal firm Miller Samuel, told the source. However, he added that many of today's sellers view pricing their home at any less than its peak value from a few years ago as a loss.

Understanding how their home's value has been affected by certain factors - such as surrounding foreclosures - can help relocating families determine a better asking price. Studies have shown that foreclosures can drop the values of surrounding homes by at least 1 percent.
 

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