Wondering how much to ask for when you put your property on the market? While every seller wants to get the best price possible for their home, the amount you ask for shouldn’t be determined lightly. The truth is, real estate pricing is an art. Getting it wrong could mean the difference between a highly-profitable sale, and winding up with far less money in the bank than you deserve. Fortunately, your agent can help you achieve a great outcome by coming up with a figure that’s competitive and fair. It’s all about finding the right strategy.

If you’re preparing to put your home on the market, here are a few things you should know about pricing…

Comparables matter

If you want potential buyers (and their agents) to take you seriously, your asking price needs to be based on data. That’s where comparables come in. Put simply, these are the prices that homes similar to yours have recently sold for in your area. Your agent will determine which properties are comparable to yours by looking at features, square footage, age, and other factors. They’ll also decide on the right geographical boundaries. Is a nearby home really worth as much as yours if it’s on the other side of a major highway? Taking all of these things into account, they’ll analyze a pool of properties like yours—and help you zero in on just the right number.

Pricing too high can backfire

One of the biggest mistakes you can make is setting your price significantly higher than the actual value of your home. Many sellers go this route because they believe they should leave some room to negotiate with buyers. While there’s some truth to this idea, it’s easy to take it too far. Typically, home hunters (especially those who are working with experienced agents) are well-informed. They’ll recognize a highly-inflated price a mile away—and when they do, they probably won’t bother making an offer. The good news is, your agent can help you settle on an appropriate buffer (if it makes sense to include one).

Getting it right the first time is important

Even if you’re in no rush to sell, it’s best to get your pricing right the first time around. That’s because the first few weeks after your property goes on the market are crucial. During this period, the goal is to generate as much attention as possible from buyers. A home that’s seriously overpriced won’t do that. Unfortunately, when a property sits on the market for too long, buyers start thinking there must be something wrong with it. Whether or not it’s true, this perception can make it hard to generate the interest you might have received if you’d set the right price in the first place.

But if you need to drop your price, your agent can help

Of course, it’s not the end of the world if you have to reduce your asking price. In fact, a strategic adjustment can turn a sticky situation into a successful sale. First off, make sure your price is the problem. If buyers are viewing your property without making an offer, something about your home may be turning them off. Once it’s determined that pricing is the issue, act quickly. Remember that one significant drop will likely grab the attention of at least some buyers, while several small ones may just make the process longer. Your agent can provide additional guidance by helping you understand how long other sellers in your area are waiting to make price reductions, and how sizeable they tend to be.

Be prepared for closing costs

When you’re determining what your financial situation will look like after you sell, don’t just focus on what you stand to gain. Closing costs are also part of the picture, and budgeting for them will help ensure that your sale goes smoothly. As the seller, you’ll typically be responsible for paying real estate commissions, along with legal fees, mortgage discharge fees (if applicable), and other assorted costs. Your real estate agent can run you through the closing expenses that will apply to you.

One of the biggest reasons homes sit on the market—or sell for too little—is because they’re priced incorrectly. Fortunately, an experienced agent can help you avoid this common mistake. When you interview a real estate professional, be sure to ask them about their pricing strategy. A knowledgeable agent should have no trouble explaining how they undertake this crucial task, and the benefits that doing it right can have for you!

Are you ready to sell your home? To get started, find an agent who will meet your needs today!