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With current market prices, an average 35%-50% of a family's income will goes toward mortgage payments. The price is then a very significant factor for many homebuyers to consider when they sort out a list of home they want to purchase. The cheapest home they can find will be on top of the list. On the hand you do not want to giveaway free money to buyer as well, at least not that much. Some buyers get suspicious when they see a home listed at very low price and they think something is wrong with the house. I think putting a house at 3%-4% below what the other homes are listed with the same features and qualities as your home is the best approach.

You best friend in these situation is Internet. Hopefully you know your area and you have some sort of general idea about parks, transportations and schools in your area. Here in Bay Area it is very important for example that you compare your home with another home in the same school district. There are some times two similar homes close by which command different selling prices, just because there are huge differences between the public schools for these subject properties. One thing that sellers have to learn is to put away emotions. For what ever reason you have, you want to sell the house. You are not the house, so if the house has a problem you should see it and discount that in the price.

Do not go around with a buyer and tell him this problem is "nothing". It takes 5 minutes to fix and so on. If it is that minor fix it and then put the house in market. If you do not fix it be ready for the buyer to ask for several times the money needed to fixing it. This is the name of the game. Buyers want to purchase a home, not a headache or a weekends' hobby.

As I said Internet is a great tool to find the price of your home. Do not fall for these automated websites that will throw you a number from blue sky and then send you dozens real estate agents knocking on your door. Finding a comparable price for your home is hard work and requires for you to work hours and hours. It is also dishonest to call a real estate agent and make him calculate the price and then do not give him the listing. I am an honest guy and I assume also people around me are honest. So if you want a real estate agent do the CMA Comparable Market Analysis for you and you do not want to give him the listing tell him like this. I want to sell my home myself. I think I can do it within two months. If you calculate an honest listing price for me and I cannot sell it in 60 days I will list it with you. Most agents will gladly do the CMA for you. Now if you want to do CMA yourself, what do you need to do? First you have to collect around 20 sales within the area around your house, which has about 2000 homes. If you live in a big city like San Francisco, this is about 3 blocks on each direction away from your home. For lower densities you have to search further away from your home some times even a couple of miles if you want to gather that many comparables. Out of these 20 you are most interested in those who has already sold. The reason is, just because a person lists home with a certain price, does not mean that he can sell it at that price! Now when you have 10-15 house that sold near your home, you have to remove those that are substantially different from your home. Hopefully your home is not an odd home and most of these houses will remain after this filtration. As I mention houses in different school district should go as well at the houses that are not same type. If you have a single family home comparing it with condos does not do you good. You should also filter out homes that are more than 20% larger or smaller than your home. After the first filtration the hard work of adjusting the value of every single one of them to your home starts. To do this you need to know current prices of doing constructions. For example if you see a home with pool sold for X dollar amount and your property does not have pool, you should find how much it costs to construct a pool and how long a pool lasts in average. Then you have to see how old was the pool and how much value it had left at the time of sale. You have to do this for every single difference you find between these comparables with your home and adjust the comparables to your home either by adding or subtracting depreciated price of the features. I promise you this is a very long brain exercise for you especially when you do it for the first time. After a few hours of calculations you should have say ten prices for ten comparables. If you did it correctly, these prices should not differ more than 10%. If the prices differ more, it is most likely that you made a mistake in calculating the price of the feature. For example, if we go to the pool example, maybe the weather in the area is not suitable for a pool and added pool will not bring in added value as it should. For differences in square footage you calculate an average price per square foot and then subtract and add so you adjust all properties to your home. Now you have to average these prices and deduct 3%-4% to give buyers an incentive to choose your property.

If you are under time pressure to sell a property I do recommend to list it with best local agent in your area. Once again you can use Internet to find such an agent. Because every single agent is best if you ask him, you have to ask a third party, Why not Google, which have access to all data.

Once you find such an agent, make sure to ask him if he gives you discount if he finds the buyer himself. This is very important, because some dishonest agents intentionally do not market your property among other agents in hope that they can sell it by their own and pocket a lot of money. In this market condition it can cost you greatly to deal with such agent. Do not even give a chance to an agent if he is not going somehow to take out that extra money off the table so he can act correctly and honestly.

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