Choosing the right price when selling your house is essential. A low price won’t benefit you but if you overprice, you’ll turn off buyers, leaving your home on the market too long. While no two houses are alike, distinguishing yours from the competition is crucial.
A little research can help to simplify the selling process and maximize your property’s worth at the end of the day. You can confidently determine your list price if you combine this information with the inside market expertise of a local real estate professional.
Here are some things to consider when deciding how much to ask for your home:
1. An Online Home Valuation Estimate
Automated valuation models (AVMs) might be an excellent place to start when deciding on an asking price for your home. Furthermore, they are generally free! AVMs are software-based pricing models that are used in the real estate industry to evaluate properties.
They then run all of the information through an algorithm to provide you with a ballpark estimate of what your property is worth. In addition, real estate agents will consider various small characteristics that AVMs do not usually assess, such as noise levels, location on a hill, proximity to a central power line, or general buyer attitude in the neighborhood.
2. The Market
Examine previous sale information for properties in your neighborhood and locations similar to yours. Having a clear grasp of the current market pricing is the first step in determining your asking price. A seller’s market, which is what you desire, occurs when there are fewer properties for sale than potential purchasers.
When more than one buyer expresses interest in your house in a seller’s market, the property’s value rises, and, in some instances, a bidding war ensues, allowing you to choose between multiple offers.
Setting a somewhat lower price than the median market value is a common strategy for increasing interest in your property. When combined with a great marketing effort, this technique results in every seller’s fantasy, a bidding war. Because markets change quickly, it’s better to look for similar sales within the last three months.
3. Hiring a Real Estate Agent
A real estate agent is indispensable when it comes to obtaining and comprehending the data required to determine an asking price. Once you’ve chosen to sell your home and researched what the asking price may be, it’s time to contact the professionals.
Your real estate agent will do a tour and provide you with a Comprehensive Market Analysis (CMA). Real estate agents are qualified and skilled in conducting market research and analysis, so they know where the market is likely headed. A CMA should ideally contain:
- Carefully selected similar properties.
- A study of current market circumstances.
- A summary of the features that distinguish your home.
4. Cosmetic Value Additions
If your property is in excellent condition, you will obtain a greater price for it. Before listing, ensure that everything is in good working order. Adding space and light, improving curb appeal, transforming an additional room into a home office, color-coordinating your kitchen, and beautifying the bathroom with white towels, candles, and a plant are just a few ideas.
A short web search can yield hundreds of different staging tips and ideas. It is critical to make a good first impression. If buyers visit a for-sale property and notice fix-it projects, they are less inclined to submit an offer — and if they do, they may negotiate a lower price.
5. Think of Yourself as a Buyer
When it comes to valuing your property, you should think like a buyer, not a vendor. Therefore, maintain a reasonable and sensible demeanor. For example, when comparing your house to a list of comparable homes, consider which one you’d choose if you were a buyer.
A qualified agent can assist you in taking a more practical approach to this. Their knowledge can assist you in determining what will appeal to purchasers and then positioning your home and pricing correctly.
6. Don’t Make the Same Mistake as Others
Have your real estate agent pull up expired listings from your area. Try and find out if they were sold at all and if they were, find out the difference between their original listing price and the price that the homes were finally sold for.
Having this information can help you understand why the pricing of the homes weren’t right and how you can avoid doing the same and facing a loss.
7. Compare Sold Listings
Looking at previously sold houses in your neighborhood comparable to yours is one of the simplest methods to determine the correct price for your property. It will give you an estimate of how much you may anticipate paying. If you live in a densely populated city, you may need to look for recently sold houses within a mile of your property’s location.
If you reside in the countryside, though, you may have to search for a radius of several miles. Your comparables should be made up of market studies, lists, and other comparisons, and it’s simple to become lost in them. Looking at comparables presently on the market will give you a decent idea of what properties in your community don’t sell and why.
Making the Right Decision
Finally, the decision of how much to list your home for sale is yours and yours alone. Throughout the process, you must remain reasonable and practical. Apart from ensuring that you obtain the most acceptable bargain possible, make sure that you price your home correctly.
List your house in a seller’s market to maximize your chances of getting a better price. Remove your emotions from the purchase and view it solely as a commercial transaction.
Remember that the market is constantly shifting. It may perform well one day and poorly the next. Staying up to date with trends and making your house as desirable as possible can help you sell your home quickly.
Have Questions? Ask Arial!
Give Arial Harrington a call today to learn more about local areas, discuss selling a house, or tour available homes for sale.