Pricing Your Condo
Setting the price of your condo is not an easy task and if you get it wrong, it can cost you, in either money or a delayed sale.
If you set the price too low, the chances are it will be snapped up quickly, but you may lose some potential profit. There is one exception, in a sellers market you may deliberately set the list price below the market price. The idea here is to get multiple buyers interested in your property and receive several offers. This results in a bidding war, which can achieve a greater price than if you had set the list price at or above the market value. Of course, this is a very risky marketing method and the decision to do this should not be taken lightly.
If you list your condo above market price, it will sit on the market. Of course, you can lower the price at a later date, but you miss the initial market surge and may be interpreted by buyers that you are desperate to sell, resulting in low ball offers.
Your personal circumstances will affect at what price you list your house. If you have another house ready to move into and don't want to carry 2 mortgages, you will want to price your home more aggressively than if you have lots of time.
Current market conditions also contribute to setting your list price. In a sellers market you may want to set a high asking price and see what happens. In a buyers market you will need to set the listing price at a more competitive level.