Pricing Your Home
How to Price Your Home to Sell
Don’t set the price of your home too high or too cheap. But keep in mind the comparisons and be prepared to change the price if necessary.
Pricing your house to sell requires a “Goldilocks” frame of mind. A price that’s “just right” is the one that attracts a buyer, is in line with the market, and puts the most money in your pocket.
It took Goldilocks some time to find exactly what worked for her, but you might not have that luxury when selling your house. So here are some do’s and don’ts for pricing your home to sell.
Don’t price it too high
First impressions are important when selling a house. Your home’s market debut is your first opportunity to draw a buyer, so it’s crucial to set the correct price. You run the risk of potential buyers missing out on your home if it is overvalued.
Imagine that you want $299,000 for your house but decide to offer it for $315,000 to see if anyone will bite. Only residences up to $300,000 may be found online by a buyer with a $299,000 budget. Your home won’t show up in any of those searches due to the way it is priced, which means you can lose out on a possible buyer.
Don’t price it too low
Some home sellers employ the tactic of undervaluing their properties in order to attract attention and even start a bidding battle. Sellers that need to swiftly sell their property also use it.
However, if you undervalue your home, you risk losing a substantial sum of money. Some purchasers might be discouraged by a discount price because they might worry if the house has any hidden issues.
Do consider the comps
Recent home sales that are comparable to yours in terms of size, location, and features are referred to as “comps” or comparable sales. Your listing agent can create a comparative market analysis, or CMA, with the help of comparable properties. You can choose a reasonable listing price with the aid of a CMA.
As a seller’s agent, “one of the problems we face is to actually draw back the curtain and show statistics.” You must demonstrate to the seller that their location is not truly unique, in which case a premium should be paid.
Don’t overvalue your home’s upgrades
You can increase the value of your home by $70,000 if you spend $70,000 remodeling your kitchen and installing a pool, right? No, never.
Even if some improvements could raise the value of your house, it’s unlikely that you’ll make back all of the money you invested. Look at nearby comparable properties for sale to evaluate whether upgrades are reasonable for the area and if they seem to affect resale value before making any renovations.
Don’t let your emotions get the best of you
When determining the price to list a house, market information, not emotions, should be your guide. A buyer doesn’t care how much you paid for the home, how much labor you put into maintaining it, how many years of memories you’ve made there, or how much money you plan to make from selling it.
“You need to emotionally distance yourself from the property,” Keep your home experiences and memories close to your heart, she said. But when you’re selling, you have to treat the transaction like a business one. Most likely, it’s your most valuable asset, so you ought to act morally.
Do adjust the price or approach as needed
Regroup with your realtor as quickly as possible if, despite your efforts to determine the “just right” price, your home isn’t drawing bids. Find out why your house isn’t selling and be willing to make changes that will solve the issue.
Pricing: While it’s uncommon in a hot market, it can be necessary to lower the price if your home is sitting empty. Perhaps since your agency performed the CMA, the market has altered. Look at some additional comparable properties and make the necessary adjustments..
Marketing: Make sure there aren’t any errors in your listing. Confirm with your agent that the home is being shown in all of the appropriate places. Your agent may need to boost marketing efforts to increase the number of people who see your listing, like offering more open houses or posting 3D tours on social media.
Alternative methods of selling: You may need to consider alternative choices, such as selling to an iBuyer, if your home isn’t drawing in a traditional buyer. A real estate company known as a “iBuyer” employs technology to purchase property outright. Although the procedure is frequently quicker and you don’t need to prepare your property for sale, iBuyers don’t operate in every market, and you might need a particular kind of home to qualify.
Condition: Talk to your realtor about any necessary repairs, staging changes, or curb appeal enhancements that could increase the salability of your home. A little tender loving care can go a long way.