If you’re in the process of putting your home up for sale, one of the trickiest steps you’ll have to go through is determining the RIGHT price for your home.
If you think about it, when looking at numbers in the hundreds of thousands, it’s easy to be blasé about an extra 12k here and there. Throwing a price at the market willy-nilly could mean passing up an opportunity at a new car, a series of luxury vacays, a year of college tuition for your child, or even a hefty down payment on another home! Inversely, being whitewashed by optimism may lead to a home price that’s “too out of the market.” And let me tell you, no one wants to be “that house” sitting on the market for what seems like forever!
Yes, homeowners, coming up with the right house price calls for realism. And with a little up-front research and legwork, you can grease the wheels for an uncomplicated selling experience while maximizing your dollars. Here are some tips and considerations when pricing your home:
Online Calculators Get You Started
Online calculators are quick, easy-to-use, and free, so it’s a great place to get started. With just a little bit of clicking around, you can come up with the decision about whether or not it’s the right time to sell at all. However, make sure that the websites you use will connect the price accurately to your address. It’s also best that you get at least five prices, nix any that seem unusually high or low, and then average the rest, as online estimates can widely vary. Once you’ve come up with a general idea about the price, you can move on to the next step.
Seek Help from Experts
Once you have your ballpark estimates, take the time to consult experts, as well. In any case, listing agents need your business, and one of the things they do to get it is to offer a free walk-through and a Comparable Market Analysis (CMA). Consider getting at least three CMAs from three different agents. Keep in mind, though, that agents aren’t necessarily your friends, so to get your listing, they may offer an unrealistically optimistic listing price. So, f an agent’s suggested listing price seems too good to be true, it probably is. Another option is to go to an appraiser, as they’re most likely to be partial, but you’ll have to pay for their clear-eyed opinion.
Consider the Buyer’s Point of View
When you’re thinking like a seller, you’re more likely to come up with a price that considers the memories your house holds. But if you’re looking at it from a buyer’s point of view, you’ll know that memories don’t mean a whit, and neither does your optimism. So when pricing your home, prepare to be rational. Think like a buyer and imagine the big, round numbers that are near your house’s value. Instead of pricing just above these estimates, the price just below them.
Check the Comparables
What’s your home worth? Surely, it’s worth what someone will pay for it. And to determine what price that is, you’ll have to gather the list of comparables and evaluate them yourself. Of course, you know your house and location best so you’ll be the best equipped to slot your house accurately among the competition. Widen your knowledge on your competitors and see how your house stacks up against the rest. Check what has sold and nest your house among these prices.
Take the Time to Know the Market
Always remember that graphs of recent median home prices rarely line up in different locales. While you can look at what housing prices have done nationally in recent months, doing this step is only the beginning of knowing your local market. To get to know the market in-depth, it’s still best to look at comparables and check what local houses were selling a year ago, six months ago, three months ago, and now. It’s also a good idea to explore the effect of foreclosures and short sales.
Give it a Fair Price
Once you have all the information and skills that you’ll need to name a fair price for your home, it’s easier to come up with a home price that’s both irresistible and realistic. One viable method is to start by naming extreme low and high prices, then using your information to narrow in on the best price. Once you have it, you can set this price as your emotional baseline to avoid selling over or below it.
Don’t Stay Behind the Curve
It’s always best to price ahead of the curve. If you set the price of your house at today’s fair value and the prices in your local market decrease two months down the line, you’ll be dealing with an OVERPRICED home. And if you decide to cut the price to market value at that point, you’ll be behind the curve again as prices erode beneath you.
Avoid being stuck in this type of situation by looking into the future and pricing your house accordingly. In a market declining by 1 percent each month, knock 3 percent off your fair price to make your property competitive three months from now.
Make it a Sweet Deal
Almost all sweet deals are difficult to pass up, so it’s a good idea to come up with an offer your buyers can’t refuse. Offer seller financing or an option to lease so that buyers who are having problems finding a lender can sidestep bank requirements and have the ability to pay a premium on the price of the house. Another option is transforming your home to a fully-furnished house to attract buyers and allow you to add on the listing price. Buyers who need a place to live asap are more likely to pay more for the privilege of a quick escrow!
Less is More (most of the time)
Every seller’s dream is to have buyers in a bidding war. Underpricing your home is the best way to get some traffic, especially if you live in an extremely hot market. But what if your low price fails to attract the type of bidders that you want? Again, selling is all about traffic. If you intend to underprice, make sure the world knows it. Upfront marketing, advertisements, and publicity listings will help you make that big splash.
Consider your fix-ups
Sometimes, the fair price of your home may take some things for granted; the paint and floor coverings are in great condition, the house is spotless, the landscaping is well-maintained, and spaces are free from clutter. Don’t forget that going above and beyond can reflect on your selling price. Any renovation and fix-up can add value to your home, but be sure to stay rooted in your comparables!
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Pricing your home💲🏠 is probably one of the trickiest steps you’ll have to go through as a home seller.🥴 Avoid selling for willy-nilly or coming up with a price that’s too out of the market📈! Here’s a list of tips and considerations on how to price your home RIGHT.🏠👍
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