How to Price Your Home to Sell? Determine Your Asking Price
If you’re thinking of selling your house, you may ask yourself “How much is your house worth in today’s local real estate market“? Putting a price tag on a home you are trying to sell is a tricky thing. The single most important factor to consider when selling a house is pricing the house correctly from the beginning.
You don’t want to overprice the house because you will lose the buyers that are truly in your price range. Many won’t even consider seeing a house in a desired location if it’s out of their price range. Your home will not be attractive to the buyers in the higher price range compared to other similarly priced homes they are viewing.
On the other hand, homes priced at the market value may receive multiple offers and possibly drive up the price. Pricing too low may cause your home to sell fast, but possibly for less money than you would have received if priced at market value. Setting listing price is all about supply and demand. It’s part art and part science, and no two agents price property the same way.
Image by Gerd Altmann from Pixabay
Where pricing is concerned, there are several things you should consider:
Comparable Market Analysis aka CMA
Look and compare your home to other similar homes that currently on the market. If you own single family home, be sure to compare your home to other single family home. The same principal applies to with pool, single story home and others.
The list should contains homes within 1/2 mile to 1 miles radius. Pays attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks. Perceptions and desirability have value. Conclusion: Compare apples to apples.
Analyzes Sold Comparable Properties
Scour local records for comparable homes that have sold in the same neighborhood over the past six months. Local county records are a great source of that information and in many counties now can be researched online. Compares original list price to final sales price to determine listing to selling price ratio. Adjusts pricing for lot size variances, amenities such as fireplaces, garage spaces, seller concessions and other factors.
Days on Market
Pay attention to those days on market. How long is it taking homes to sell in your area? That number that will tell you how long it is taking to sell homes in your area, on the average. The days on market will also help to set your budget and expectation, especially you decided to move first then only sell your current home.
Researches Withdrawn and Expired Listings
Looks for patterns as to why these homes did not sell and the common factors they share. Is it over-priced? conditions or marketing. Which brokerage had the listing: a company that ordinarily sells everything it lists or was it a brokerage that might not have marketed the home properly or has a history of overpricing. Thinks about the steps you can take to prevent your home from becoming an expired listing.
Looks at Active Listings
Active listings will be your competitor especially if they compare to your home. Keep in mind that seller can ask whatever they want. Think like a buyer. To see what buyers will see, you should tour comparable active listings yourself. Make note of what you like and dislike, the general feeling you get upon entering these homes. If possible, recreate those feelings of reception in your own home.
Ask yourself why a buyer would choose your home over any of these and adjust your price accordingly as needed.
First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers. If your home is over priced, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and keep in mind that your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out among other — in a positive way.
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