1. Recently sold prices of other comparable homes in your neighbourhood.
2. Market trends, which may be increasing or decreasing the values in your area.
3. The condition of your home at the time of viewing.
4. What you are prepared to negotiate in the agreement of purchase and sale

So with all this in mind, let's see how your initial list price can directly affect the final market value of your home, which is the final price you will realize in its sale.

The chart on the left shows the relationship of activity, (the interest among agents and buyers), versus timing over the first few weeks of a house going on the market for sale. Statistics show that a property attracts the most excitement and interest among agents and buyers when it is first listed. Interest peaks usually around the third week, dropping off sharply after weeks 4 and 5, as purchasers either move to make other purchases or turn to newer inventory.

After the activity has declined to a trickle, or less, the seller has no choice but to reduce the price. When a property is reduced in price, interest is rekindled among agents and buyers alike, directly depending on the amount of the reduction. If the price slowly inches down, the activity will die down as time goes on. However, a reduction which reflects the real market value can usually generate the needed activity to get the property sold, and still at a fair price.

The last chart shows how failure to bring the price into line with fair market value within a reasonable period of time can lead to a selling price below market value! When a property is priced too high and does not sell in the beginning, the seller reduces the price in an effort to promote a faster sale. As more time goes by, the seller continues to reduce the price. However, because less interest is generated the longer a property remains on the market, the price drops until the house finally sells at a price below market value.

How do you determine what the initial asking price should be?

B.  The Condition Of Your Home
The first five minutes are critical in selling your home! It has been said that buyers make up their minds in 5 minutes, then spend the rest of the time rationalizing their decision. The closer you can bring your home to impeccable move-in condition, the easier it will be to get the best price for your home.

Home buyers inspect many houses, all within the same price range. They begin making value judgments from the moment they drive up to a house. Their first impressions begin with the yard, the driveway, and the front door. Once inside, buyers can feel the pride of ownership of an attractive, well maintained home, or its absence.

1. Start with the outside. Look at your front yard through the eyes of the buyer who is starting to make judgments from the moment they step out of their car. Is the front yard clear of toys, tools, building supplies? Are the lawn and the shrubberies properly cut and attended to? Are the flowers blooming? Are there oil stains in the driveway? Is the barbecue dull and rusty, or bright and black?

2. The exterior of the house. Is the paint fading or chipping? Is there any mildew or mold? If the paint needs a new coat, the most important places to freshen up are the trim and the front door. If the paint is new, then have the exterior of the house, and the decks, pressure washed.

3. Inside the house. Go through your house room by room and pack up 30% of the accessories. The family who wins the Housekeeping award probably sells their house first. The cardinal rule is this: The way you live in a home and the way you sell a home are two different things. Remember you are in competition with all the other properties your prospective buyers are looking at. Look at it this way. You are going to move anyway, so just consider this advance packing! Remove as many items from your storage areas as you can, and hang clothes neatly and tidily. And any furniture which might be a bit too much for the room.

4. Take a look at the paint. If painting is required, use flat latex and neutral colours. Make sure wallpaper is clean and up to date. If walls are dirty, experiment to see if scrubbing them is easier than painting. Repair cracked plaster, loose door knobs, crooked light fixtures and faulty plumbing.

5. Now, make your house sparkle. If you do not have the time or the inclination, hire someone to thoroughly clean the house. Clean windows inside and out, curtains and drapes, and appliances. Have your bathrooms scrubbed to pass a white glove inspection. If tubs or sinks are discoloured, have them reglazed. Recaulk the tub and shower if necessary. And above all, make sure you get rid of all your kitchen odors.

6. Pets out of sight and out of smell. If you have pets, you need to get rid of pet odors. And the pets themselves should be kept out of the way, and out of the house during showings. Make sure you hide away all litter boxes and feeding bowls every time there is a showing.

7. Now, tackle the basement. The basement is the catch-all area where everything goes that has no place else to go, so it's usually a mess. Don't forget, buyers are liable to be just as interested in the basement as they are in the rest of the house. So try and straighten it out and clean as much as you can. You might consider a coat of paint for the walls, or even the floor.

8. Finally, straighten out the garage. Empty as much as you can from the garage, hose down the floor, paint the walls if necessary. If your garage is neat, it reflects on the way you take care of your house.

9. When buyers come to visit. Open all the curtains and blinds (closed at night). Turn on the lights. If the rooms are dark, or your lighting is dim, replace the bulbs with higher wattage. The television should be off, but a little soft background music helps to set the tone. Leave the house for the Realtor to show it.

C.  The Market Exposure Your Home Will Be Given
After you have priced your home close to fair market value, and showcased it for sale, it is ready to take to market. And it is ready for the real estate representatives who will be the first to see the house, and it is ready for the buyers they will bring. The task is to bring serious qualified buyers who are interested in a home with your specifications, and in your price range.

So now your house needs as much exposure to the market as it can get. And there are a series of steps an experienced Realtor will take to give your house the maximum exposure in the first few days and weeks that it can get.

These activities include:

D. The Final Terms Of The Agreement
Even when a buyer and a seller come close to agreeing the final price of a house, the successful completion of the sale can rest on many factors which must be included in the agreement of purchase and sale. The bottom line is that anything is up for negotiation as the agreement is spelled out by the purchaser, and sometimes the smaller items can hold up the outcome of the sale.

The terms of the agreement are prioritized by each vendor, and reprioritized by each buyer. They vary with each sale.

Some of the items that may receive attention, and therefore be items for negotiation between the two parties are:

• Conditional on Financing. If the buyer needs to find financing to finalize the agreement, a time may be included in the agreement.

• Conditional on the sale of the buyer's home. Sometimes the buyer, whose home is on the market, but not yet sold, wants to agree the sale subject to the sale of his property.

• Closing dates. Some may want an earlier or later closing date than you would like. Be prepared for flexibility.

• What equipment, fixtures and chattels of yours are included in the sale price.

• Condition of the house, repairs the buyer may want to have done.

• How the mortgages are dealt with (sometimes the buyer writes a vendor take back of the mortgage into the agreement).