Maximize your chance of a profitable sale by avoiding costly marketing mistakes. If you currently own property and are thinking of placing it on the market, one of the first steps you'll take is setting an asking price for your property, an important move that requires the ability to find the perfect balance between attracting solid offers and ultimately receiving top dollar.

It is good idea to work with a Realtor or other industry professional, who has experience in preparing your home for sale, pricing your property appropriately, marketing it effectively and provide information on fair market value, which typically means the highest value an educated buyer will pay. Fair market value is usually not the asking price.

Pricing is an important component od selling process and finding the best buyer for your property. Most realtors will begin by conducting a competitive market analysis of your house and give you an estimate of the fair market value of your property, which is a range that will fluctuate depending on the housing market in your local area and how much similar homes in your neighborhood are selling for.

Competitive market analysis will also show which properties will be competing with yours for buyers' attention and what's happening in the local real estate market right now. Make sure you know it before you make the most important decision - the listing price for your property. Competitive market analysis will help you to see your property's value from the buyer's perspective - which is what counts when you are pricing your property to sell.

What you should know about setting your price

If you're in a hot buyer's market price reductions are becoming more common and sellers are having a tough time adjusting to fewer offers, fewer multiple offers and increased market time to sell. In a hot buyer's market buyers are also less emotional and not afraid to offer significantly less than listing price plus they tend to ask for additional seller participation.

If you're in a hot seller's market, you'll have the advantage because every time the market has been gaining steam, the seller is taking control. Some sellers want to price property higher because they want to have a cushion to negotiate with, but the problem usually is, they don't have anyone to negotiate with. Don't be seller with plenty of cushion and no buyers! So, be careful and avoid overpricing, which is always nonproductive. Find out more about pricing your property to get it sold and the risks of overpricing.

HELPFUL LINKS:

• Get Realtor on Your Team When Selling
• Getting Your House Ready to Sell
• Make the Necessary Improvements
• Quick & Easy Ways to Spruce Up Your Home
• Create a Good Marketing Plan
• Bathroom Makeovers
• Open House Tips
• Moving Tips
• Community Info
• Real Estate Glossary
• Real Estate Terminology