Pricing In A Buyer's Market

What is a 'bottom line'?

For a seller to figure out his bottom line he should basically take his sales price less his selling cost at that point then he can figure what his mortgage is and at that time he can see what he has left over. Out of what he has left over what he really feels he needs to leave the transaction with.

Should I set the price of my home by comparing it to other current listings?

Setting your price of your home by comparing it to different listings in the neighborhood, it depends, if a listing has been on for 30, 60, 90 days and its a comparable home not selling, then definitely don't price it there. Come down 5, 10%, depending on how long that house has been on the market for. So just because a house is priced at a certain and its still active doesn't mean that's the sales price. So you really have to look into how long its been on the market for, how it compares to yours, but at the same time I would look at what's in escrow and what has sold recently.

How accurate are web sites that determine the value of homes?

Websites for price comparisons are not always accurate. They are taking in tens of thousands of homes, not comparing the exact upgrades of a home. So, I'm not real satisfied with where web sites prices come in.

Should I pay for an inspection before I put my house on the market?

Paying for an inspection prior to putting your house on the market is really not a bad idea. I've had examples where I've gone into a great escrow. Seller has gotten a great price, we go through the physical inspection, next thing we know the buyer is asking for ten, twenty thousand dollars in credits that came out of the blue. By preempting that, doing a pre-inspection you can figure out what issues are going on with the house, fix them or either disclose them during the escrow or during the negotiations and let the seller be aware of it. So I think it's a great idea.