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One of the most important factors homeowners must consider when they are planning to sell their homes is pricing. An effective pricing strategy can mean the difference between a quick sale and a property that lingers on the market for months.

There have been many reports in recent months about escalating home prices and bidding wars which are being fueled in part by strong buyer demand and a very tight inventory of for-sale homes in many regions of the country.

According to the latest report from the National Association of Realtors®, home prices have continued to rise.  Nationally, the median sale price for an existing home climbed 4.8 percent to $219,000 in August.  August was the 30th consecutive month that saw year-over-year price gains.

After hearing the national price statistics from NAR, home sellers may think that increasing prices mean they can demand higher and higher asking prices. Buyers may also think they have to bust their budget to beat out the competition to get the home they want.

However, before settling on a price, home sellers and buyers must seriously consider and factor in local market conditions. In the Northeast, for example, the median price in August fell 0.8 percent from a year earlier to $265,800 even as existing-home sales jumped 4.7 percent. Meanwhile, the median home price in the Midwest jumped 5.9 percent from a year ago to $173,800.

Homeowners need to be realistic when setting the asking price and take into account other for-sale properties that are competing for the same group of buyers and whether home sales activity is tapering off. In other words, the asking price needs to accurately reflect current local market conditions. A local real estate professional will be able to provide a comparative market analysis and offer advice on factors like property condition and inventory of for-sale homes. An experienced real estate professional can also provide tips on improvements you can make to make your property really pop compared to other for-sale properties.

To learn more about pricing and the entire homebuyer and selling process, speak with a sales professional at Coldwell Banker Residential Brokerage. Using information included in the graph, along with additional data gathered from your specific community, your Coldwell Banker Residential Brokerage sales professional can explain the precise factors that could impact you in your decision-making process.