How Do You Price A Home?

There are so many ways that a home can be priced.

It can be the fair market value, what makes the most sense in the market, and most often this is the case. But sometimes a home needs to be priced a certain way based on a financial situation. To sell a home we need to be able to pay off the mortgage, any liens against the home, the cost of the lawyers, and the cost of the realtors. If there aren't enough funds the sellers need to come up with the shortfall, so sometimes we need to list a home for more than it may be "worth" in order to pay off all the things.

Then there is also quite simply the number that the sellers want for it. Maybe it is higher (or lower) than what the home is worth from a market perspective, but it is what the seller feels it is worth and wants to sell it for.

So, sometimes if things just don't seem like they are making sense, there may be a back story, and an underlying reason for why a home is priced the way it is.