An Example of how the game is played.

Let’s assume there are 3 very similar homes for this example – level of renovation, size, layout, building/neighborhood, etc.

Home A – sold in 3/2008 for $800K by a broker. Not including other closing costs the owner nets $752K.

Home B – is listed in 8/2008 for $825K by a broker. This scenario happens all the time, where sellers price above the comparable level in this market.

Home C – is your home and you’ll be selling on your own without a broker. You do the necessary research and find a comparable sale of $800K which Homeowner A netted $752K after the broker’s 6% commission. From this, you now can list a dominating market price. You decide to list your opening price at $780K – $20K below the last sale, to create a deal for buyers while still netting you more money than Homeowner A.

To highlight the deal you’re offering, whenever Home B is having/planning an open house or event, so do you. This is a great comparison and will give an added boost to your sales effort. Plus, since you’re posting your listing online, you’re getting maximum exposure.

While Home A might sell for more money, Homeowner C will net more money and since they’re under the comparable level, they’ve a greater chance for multiple offers and selling in a much shorter period of time. Also, Homeowner C knows that their home is well priced, so they can be firmer in their negotiations.

Home B will probably remain on the market longer and may even need to lower its listing price to generate offers.