Home Pricing: How low can you go?

By: Staff

4 Min Quiz

Image: refer to hsw

About This Quiz

Pricing your home accurately when you first list it is the best way to get top dollar on your house. How much do you know about setting the price and when it might be time to lower it?

The real estate term CMA refers to what?

A Competitive Market Analysis is a document prepared by your real estate agent showing comparable properties, your house's specs and market analysis data.

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Which of the following data would an online home value calculator most likely NOT take into account?

Online estimators are limited to the brick-and-mortar facts of your house and similar houses. However, subjective factors, like proximity to a freeway, are likely to influence price as well.

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Which of the following is one advantage of getting your house appraised before listing it for sale?

An appraisal will probably cost between $300 and $500, and for that price you should get an unbiased and informed opinion of what your house will sell for.

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Which of the following is most likely to allow a higher selling price?

Seller financing or the option to lease can help buyers who would otherwise be unable to borrow, making these buyers place a higher value on your home.

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Which of the following is NOT a potential advantage of underpricing your home?

Commonly, a buyer who offers less than a 20 percent down payment will be required to pay mortgage insurance.

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Which of the following is an indicator that you might be better off fixing up your house rather than reducing the price?

If you're getting a lot of walk-throughs but no bids, then your listing is attracting interest -- it's the house itself that's turning people off. You'll need to either fix what's wrong or lower the price.

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The acronym DOM refers to what?

As your Days on Market (DOM) increase, so too does the likelihood that you overpriced your home.

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Which of the following should you take into account when calculating your asking price?

It's a good idea to consider all of these. The more information you can get before listing your home, the better.

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When lowering the price of your home, what is the minimum price reduction that most experts recommend?

You need to cut enough to make buyers reevaluate their decision to pass you over. Most experts suggest at least $5,000.

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What is the best way to encourage a bidding war?

There's nothing like the appearance of a steal to attract attention from multiple bidders. Just remember, if you underprice your home, you'll need to make sure the listing is highly visible to attract enough attention for a bidding war.

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