Many factors in the real estate market go into pricing your home to sell. First, pricing is essential in selling any property, but it can be challenging when you’re not sure how much you should price your home for sale.
To help figure out an appropriate price point for your property, here are seven factors to consider:
Check comparables in your area.
One of the best ways to get an idea of how much your home is worth is by checking the sold prices of comparable properties in the area.
Conduct an appraisal of your home’s value
Suppose you’re thinking about selling your home and getting the best price. In that case, it might be worth getting a professional opinion on the current market price range and condition assessment from a professional appraiser.
This way, you have accurate information before making decisions that could impact its resale potential later.
Working with an experienced and professional real estate agent is a great way to determine what your home is worth. In addition, real estate agents can help you find the right price for your property to sell quickly and smoothly (in other words, maximize its chances of selling) – which in turn can save both time AND money.
Contact us today to learn more about what a real estate agent might do if they manage a transaction on behalf of their client when it comes down to pricing considerations.
Never overprice your home
If you want to sell your home fast, do not initially ask for more than your home is worth. Instead, research sold homes similar to yours and price your home accordingly.
Some people will pay more than the asking prices, but you can’t count on that happening all the time, so don’t overestimate how much a buyer might be willing or able to offer for the home.
Price the home right, and if it is a desirable home, you may get many competing offers, with some even above your asking price.
The worst thing you can do is start with an asking price out of the ballpark. It will take a lot longer to sell, and it may have more than one offer at or below your initial listing.
What’s worse, the longer a home sits unsold, the less likely it is to sell because people see a long unsold listing as a red flag, even if there’s nothing wrong with the home itself.
Avoid round-number pricing
As odd as it might sound, psychology plays a massive role in how people perceive your home’s price. Round numbers like $100,000 might seem clean, but people will take a second look at a house priced a $99.999 significantly more.
Those rounded numbers – $50,000, $100,000, etc. – are called “century prices,” Our brains see them as dramatically more than something that’s $1 or $10 less.
You can see evidence of this in your daily life, as strange as it seems. At the store, you’ll rarely see whole-number pricing. The housing market is the same, so always opt for a lower number, even if it’s just a little lower.
Don’t assume your renovations add to your home’s value.
Many homeowners put work and money into their houses over the time they live there and see a direct correlation between what they spend and their home’s value.
Unfortunately, this perception can make their perception of their home’s value overinflated and make them not want to sell for less.
The problem is that home improvement does not dollar-for-dollar increase your home’s value. So don’t let what you’ve spent on your home cloud your judgment of a fair offer.
Consider real estate website price ranges.
You can sort by price range when you go online to buy just about anything. These run differently depending on your area, but often $0-$49,999 is one, $50,000 – $99,999 is another, and so forth. Pricing in those ranges can help bring more views to your home (and this is another reason to avoid century pricing).
Be open to lowering your price after listing.
Many people see lowering their asking price as a sign of defeat or that they’re doing something wrong. The truth is, most home prices are reduced at least one time and often more than once. Lowering it is okay, and it shouldn’t reduce your expectations. A slight price decrease can often attract a whole new swath of potential buyers.
Work with a Realtor or Real Estate Agent to Price and Sell your home.
Many people are understandably nervous about pricing their home right and then trying to sell it themselves. The truth is, real estate professionals have vast experience with listing homes for sale that you can use as a resource in your process of selling. The three best things about working with a real estate agent are:
1. They know the current temperature of their local real estate market
Understanding current market prices and trends. In areas with few listings, a knowledgeable broker will know what homes have recently sold in that area to give an accurate estimate of your value.
2. They are trained professionals at the art of pricing a home right to sell
A trained real estate professional will know the nuances of pricing a home for sale; they’ll also have an idea about what homes in your area are selling at and can use those as leverage when setting prices.
3. They have marketing reach and marketing opportunities beyond what you can do on your own
Many brokerages have access to marketing channels not available to an individual, such as real estate events, the Multiple Listing Service, direct mail, real estate professional organizations, real estate agent networks, broker tours, social media, and sophisticated real estate websites. Real Estate agents use these tools in tandem with your listing.
A home seller’s goal is to get the most money for their property, but it’s not always easy. Many factors contribute to pricing your home right. These seven factors can help you determine what price range might be best for getting the most money and selling your house quickly.
For the best outcome, consider leveraging the expertise of a real estate agent.
To start the process of selling your home, contact us today.