How to Determine the Asking Price for Your Home
When new homebuyers discover your home’s listing, they’re going to immediately start weighing up all its features and comparing them to the other homes in the area.
They’ll look at the square footage, the number of bedrooms, bathrooms, etc. But the one thing that will probably have the greatest impact on them is the price.
How do you determine the selling price for your home? How can you make sure you’re not under- or over-pricing it? (The first would lead to losing a lot of potential profit and the second would leave it sitting on the market for far too long.)
There are a few simple guidelines that can help you set the price of your home and maximize your opportunities to earn top dollar for your home.
Do Your Research on Past Sales in the Area
We can start to get a basic picture of your home’s value by taking a look at the sales statistics for other homes near you. If there aren’t enough homes in the area to develop a profile, we can then start to look at other comparable homes that have the same number of rooms, bathrooms, and other features.
We can run these numbers for you to determine the average sales numbers on a range of homes that are similar to yours. This research will show us what others initially listed their homes for and what they actually sold for, so we won’t over- or under-shoot when we set a price for your home.
Understand How People Search by Price
People search on websites for homes by number of bedrooms, bathrooms, square footage, and price. However, when filtering their searches by price, they’re looking for something that is no more than a certain amount (compared to searching for bedrooms and bathrooms, in which they search for at least a certain number).
This means that if you’ve determined that the market value of your house is around $255,000, price the home at $249,900 to not lose out on potential Buyers who are looking for a home under $250,000.
Depending on your homes location, the pool of Buyers can greatly increase by making simple adjustments the price.
Be Flexible When Necessary
You may be setting your home’s price, but you’re not setting it in stone. The market is always changing and can vary depending on the time of the year you plan to list your home.
You need to be flexible enough to react to these changes. If you receive new information on the market, or you discover a new trend that relates to your home, you need to be flexible and fast enough to make the necessary changes to your home’s price.
While there will likely be some discussion with potential buyers after you’ve set the asking price for your home, we’ll help you determine how much leeway you have when negotiating so you can still sell your home for a fair price.
Take the Time to Up the Value
There are many different things you can do to up the value of your home, and these should be completed before you start setting the price for your home.
This includes everything from giving the entire home a thorough cleaning to making those final upgrades to the kitchen. (Sure, you won’t be using those upgrades yourself, but if you can add them now and still and increase the homes value, why wouldn’t you?)
Upgrades can take time so be sure to plan accordingly and give yourself enough time to complete them before the selling season begins.
Work Closely With Your Agent
We are here to make sure you have all the information you need to determine the most effective and profitable price for your home. We are going to work closely with you to ensure we understand your individual needs, and then delve deep into the research so you can base your decisions on the most recent and up-to-date information.
We will use our knowledge of the local market to ensure your house sells for the right price at the right time.
Think Like a Seller, Not an Owner
Have you been in your home for years? Decades? The memories tend to add up, sending the sentimental value of the home through the roof.
However, the market value of your home may not actually reflect that kind of value.
When we work together to set the price of your home, we will have to distance ourselves from the memories and the sentiments. It can be hard in many cases, but it’s important to think like a seller – and that means sometimes making difficult decisions in order to sell the home for the right amount.
Setting a Price and Selling Your Home
There are many factors that need to be taken into consideration when pricing your home such as timing, market conditions, recent sales and the condition of your home.
Understanding how to determine the asking price for a home doesn’t have to be difficult.
We will work with you to help you understand exactly how we have derived the price and prepare you for what you can expect in the local marketplace. Contact us today and find out how we can help you price and sell your home.