Setting the Price of Your Home

You may want to read the previous chapter on things not to do before selling a homehere.

The whole idea, of course, is to get the maximum price and the best terms during the window of time when your home is being marketed.  There is no certain price conclusion; it is literally ‘what the market will bear’.  That’s why the sale price of a home can be very different than its assessed value for tax purposes.

Price Factors

Price is subject to many factors, one of which is location.  In a community with an expanding job base, a growing population and a limited housing supply, it’s likely that prices will rise no matter what the economy at large is doing. Owners who must sell quickly may have less leverage in the marketplace than those who can afford to wait – wait for the holidays to be over, wait for similarly priced homes to sell in their neighbourhood, wait to complete needed repairs.

As a seller, it’s important to remember that price does not depend on what you hope to net, but rather on the principle of supply and demand.  That being said, there are definitely things you can do to get a better return on your investment!  We have already mentioned the improvements you should make to your home, the things you should not invest into, and in the next chapter, we will discuss some effective marketing practices.Sale price is not the whole deal, anyway.  The Contract of Purchase & Sale may include other stipulations, such as closing date, conditions, even the state in which you hand over the house (leave appliances in, make a few small repairs, etc.).  All of these conditions can have bearing on how happy you are with the sale.  The amount of flexibility you will have to demonstrate to close the deal depends on local market conditions.