How to price your home to sell
The Ins and Outs of How Home Pricing Strategies
Everything has value. This is especially true for your home.
When it comes to real estate, how to price your home to sell is one of the most important strategies. You made memories at your home. You’ve got a major financial interest in your place, too. Buyers think of value, but they’re more concerned with price. Your home’s price is one of its most attractive — or unattractive — features.
The right price can attract buyers, quickly. The wrong price may mean the house sits on the market. Homes on the market for a long time make buyers that there’s something wrong. You stop getting showings and offers
It’s your agent’s job, as the real estate expert, to use his or her expertise and knowledge of the market to determine how to price your home to sell. It’s your house, and even though your agent’s estimate will be very close to the ideal market value for your home, you may want to have your own idea of how much your property is worth. Here’s are some home pricing strategies to consider:
# 1 Work With Your Agent This is crucial.
Your agent brings the mix of industry expertise and knowledge of your local market to the table. To understand whether your agent is pricing your home properly, you should do some things yourself. Then Use what you learn about your home’s fair market price to evaluate any price your agent recommends.Throughout the pricing process, a good agent will:
Listen to your needs.
Take into account your research
Use his or her knowledge of the local market to help you pick the best asking price.
You’re a team. It’s in both of your interests to price your home correctly — a timely, profitable sale is win for everyone.
#2 YES, You Should Check the Internet
Pricing a home is both art and science. Be prepared to bring your own educated input to the conversation — start with a pricing research phase. This includes taking advantage of online estimating tools —but only to an extent. Property websites like realtor.com® and Zillow enable you to plug in your home’s address to see approximately how much your house is worth. They base their estimates on your home’s square footage and real estate data they’ve collected, such as recent home sales. There is quite a bit of error in this since NM is a non-disclosure state so they only have listed values not sold values in your local market.
But those results are estimates based on generalized factors, not your unique situation. If at any point the price you see in an online calculator doesn’t align with what your agent suggests, try to determine what factors make up the discrepancy. Online estimators often mislead buyers and sellers alike with less-than-optimal pricing information., But as a starting point, they have their utility.
#3 Know Your Local History
What your home’s listing price should largely depend on what similar homes, or “comps,” recently sold for in your area (you can get this from your agent) and what price is currently listed homes asking. To price your home, you should look at the average sales prices of at best three sold comps and listed comps to assess your home’s value. Beware you are evaluating apples to apples. Make sure you are really looking at a comp. A number of factors, including a home’s:
Age, Location, Square footage, Number of bedrooms, bathrooms, and garages,
and especially the features of that house versus whether you home offers more or fewer features.
Your agent has the ability to look into the difference between each comp’s listing price, and the price it sold for. Consider price reductions and why they happened. When selecting comps, generally look for properties that sold within a one-mile radius of your home, and in the past 90 days. You can find these homes using the national database sites and especially on your agent’s website but beware of errors inherent in the national data (like non-disclosure of sales prices).
#4 Size Up the Competition
You must carefully look at properties that are currently for sale in your area. These listings will be your competition. Buyers will want to see all the homes in your price range with similar features. A “good set of listing photos” or a Video Tour of the property will help you to see what condition they’re in and to assess how your home sizes up.
#5 Understand the Market You’re In
The housing market where you live can greatly impact your pricing strategy. If you’re in a seller’s market, where demand from buyers outpaces the number of homes for sale, you may be able to price your home slightly higher than market value. But if you’re in a buyer’s market, where buyers have the advantage, you may have to price your home slightly below market value to get people interested. You can see local market trends by checking the online resource realtor.com®, and many realtors offer a market analysis on their personal websites. Market analysis has a lot of information some of which you may not understand. Remember, At any point, you can ask your agent to help you make sense of how your local market will influence your home’s price.
#6 Put Your Feelings Aside
As previously mentioned, many sellers think their home is worth more than it is. Why? Because of memories. Because of sentiment. And Because of pride. But you must stay objective when assessing your home’s value. Buyers, after all, won’t know your home’s personal history. What makes your home special to you may not be something that entices them. They may want to convert that craft room you worked so hard to perfect into a man cave. The lesson: As much as possible, set aside your emotional attachment to your home. It will make it easier to determine a realistic, clear-eyed calculation of its price.
#7 Be Savvy With the Dollar Amount
Pricing your home requires careful attention. In some cases, the fair market value may not be precisely what you should list it for — for all the reasons we have talked and possibly some other more subtle reasons. For example, if comps show that your home is worth $310,000, setting that as your asking price can backfire — the reason is that buyers who are looking online for properties under $300,000 won’t see your home in search results in that case. This is why many agents use a pricing strategy that includes a lower price. Remember The idea is to maximize exposure, squeezing the last dollar out of the price may turn off buyers and get you no showings or offers.
#8 Keep Your Head in the Game
You’ve considered your agent’s advice, and compared it to your own research is you desire to do it. The two of you have agreed on the right price for your home. Your house is on the market. Even after the listing date, price should be an ongoing discussion between you and your agent. Markets are fluid, so it’s possible that you’ll have to make tweaks. In any case, it’s important to stay in continuous dialogue with your agent, this the Most Valuable Person on our Team.
Your agent’s goal is to sell your house quickly. It is important to work together and to keep your eyes on the price.