This blog post is meant to provide you with some information on pricing your home correctly and the factors that go into how to decide fair home pricing. It will be important for you to understand the value of your house and how it affects potential buyers before deciding to put it up for sale. You may also want to speak with a real estate agent so that they can help you come up with an estimate of how much to price your home at, as well as answer any questions about selling in general that you might have.
Take Into Account the Surrounding Market & Other Homes in Your Neighborhood
In order to sell your home quickly and get top dollar you should price your home based on what other homes in your area have sold and are currently selling for and not just what you paid for the home. Check out recent sales in your neighborhood or comparable properties that have recently come up for sale and pricing information from the MLS (Multiple Listings Service). You may also want to include any special features about your property such as a new roof, updated kitchen , great view, etc… Keep in mind that home prices may vary if you own a historic home and, remember, location is everything!
Understand the Timeframe in Which You Need to Sell Your Home
Another key consideration when pricing your home is the time you want to sell it in. If you are selling your home because of a job relocation, for example, you may not want to sell the property through traditional methods like MLS (Multiple Listings Service) or FSBO (For Sale By Owner), but instead sell it more quickly by accepting an offer quickly on your own terms. You can then close more quickly and avoid having to pay double mortgages if you sell first then buy again which will save on interest.
Know What Your Home is Worth & How Much it Will Cost to Sell it
You should consider how much it’s going to cost you to sell your home as well as how long it may take to go through the process. The average time it took for a home to sell last year was just over three months. The more costly your home is compared to similar homes in the area, the longer it will take to sell your home at that price. You should factor these costs into how much you are asking for your home before setting the price.
Try to Choose a Middle Ground on Home Pricing
When setting the price for your home, it’s important that you set it high enough so that people will pay market value for the property, but low enough so that people will still be interested in buying it within normal time limits. If you overprice your home, buyers may not even consider it, because it will be too expensive for them to consider purchasing.
Look Into the 99 Strategy For Home Pricing
The “99” strategy is almost always used in real estate. If a seller values their home at $499K rather than $500K, the $1K they will lose will be enough to cover some of the buyer’s closing costs. But, in the mind of the buyer, it is still $500K. A seller or buyer won’t notice a difference if they add $1K to lower the price. You and your agent should agree on the estimated value of your property if you are a seller. Once you have established a range of price points and a home’s worth, you can start to nail down the final price.
Don’t Deviate From Home Pricing Norms
Sellers sometimes want to be creative with their asking prices. For example, a seller who had a home valued at between $750K-$800K decides that they want to sell it for $766,666. An oddly specific price like this brings unwanted attention like a neon orange house. Buyers will start to wonder why that seller chose this figure and will, in turn, be curious to learn more about the seller. If possible, it is best to keep the seller away from the buyer because the property is what needs to be shown, not the seller. This tried-and-true strategy is countered by being quirky in your asking price.
Don’t Be Afraid to Discuss Home Pricing With Your Real Estate Agent
Listen to your agent’s advice on pricing strategy. They have to be able to tell you what works and what doesn’t. Pricing a home doesn’t happen in a “set and forget” manner. There are many factors that can impact the price of a home. If you can be flexible and react quickly to changing market conditions or new information, you’re more likely to get the best price with the least problems.
When you’re ready to sell your home, it’s important that you understand how pricing affects potential buyers. You may want to speak with a real estate agent from a reputable real estate company who can help you come up with an estimate of what to price your house at and answer any questions about selling in general. Contact one today so they can provide information on local market trends as well as give advice on preparation before putting your property on the market.