Pricing a home for sale is based on hard data and information, but many sellers still insist on inserting their own emotions into the equation.

Smart sellers understand that math is the most important factor and that crunching the numbers is always going to be the best route to an accurate home price. 

Here's how to do it:

#1 Don't Overprice

Many times, homeowners think it's OK to price it high at first, because, "who knows? Maybe we'll get it! And we can always lower it if not." But you're going to sacrifice alot in the process.

Sellers have to keep in mind the location. The prices of other homes in your neighborhood are going to have the largest impact on your home's sales price, regardless of almost anything else.  Buyers looking in your neighborhood are looking at a particular price range. Pricing your home outside of that price range means you won't even get a look.  Sellers have to keep in mind "Who are going to be the likely buyers?”

The most obvious pitfall of overpricing: A house that remains on the market for months can prevent you from moving into your next home. Or if you've already purchased your next home, you're going to be looking at two mortgages and/or household expenses. 

And worse: Continually lowering the price could turn off potential buyers who might start wondering just what is wrong with your home.

Buyers are smart, educated, and have a ton of data at their fingertips. If you don't price correctly from the start, you're going to lose them.

#2 Don't Expect Dollar-for-Dollar Returns

It's easy to fall into two common traps:

Conflating actual value with sentimental value...how much they assume their home is worth because they lived there and the time they spent there is special to them. 

And assuming renovations should result in a dollar-for-dollar increase in the selling price...or even more. For instance, putting in new flooring may seem like a huge impact if you've been looking at old-outdated flooring for a while. So it's easy to think that putting in a few thousand dollars worth of new flooring would impact on the home's value into the tens of thousands.  In reality, buyers may be looking at a range of homes, including new homes, that all have nice floors. Therefore, decent flooring becomes what is expected in the price range, not something that makes a home worth a much higher price. 

Another issue may be "over renovating." Major additions may inflate the square footage... and the price...to a point that it no longer is practical for the surrounding neighborhood. Potential buyers who might be interested in the upgraded home at the higher price are likely more interested in a neighborhood with a higher price point to begin with....and less affluent buyers likely won't be able to afford the asking price.

"Don't buy the nicest home on the block" is common real estate advice for this reason.

That's not to say that renovations aren't worth it. You want to enjoy your home while you're in it, right? Smart renovations make your home more comfortable and functional but should typically reflect the neighborhood. A REALTOR® can help you understand what upgrades have a better recoup value when you sell and which appeal to buyers.

Another culprit for many a mispriced home is online tools, like Zillow's "Zestimate.  The estimate is often wildly inaccurate. 

#3 Use Comps (Comparable Sales)

The best pricing strategy? Consult a real estate agent, who will use comps to determine the appropriate listing price. They're not just looking at your neighbors;  they're seeking out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.

Once they've put together a list of similar homes and the actual prices buyers paid, they can make an accurate estimate of what you can expect to receive for your home. If a three-bedroom ranch with granite countertops and a screened porch down the block sold for $359,000, expecting more from your own three-bedroom ranch with granite countertops and a screened porch is pretty much a pipe dream.

After crunching the data, they'll work with you to determine a fair price that will bring in potential buyers. The number might be less than you had hoped for, but listing your home correctly...not idealistically...is a sure way to avoid the aches and pains of a long, drawn-out listing that just won't sell.

#4 Adjust the Price When Needed

Once your home is on the market, you and your agent will start accumulating another set of data that will serve as the ultimate price test: how buyers are reacting to your home.

There's an easy way to tell if you've priced your home too high: No showings are occurring. If your home is priced way too high, then it is priced way too high. If you're getting lots of showings and no offer...it likely means it's likely being marketed well, but it's overpriced once people get inside.

One thing is for certain, when it comes to finding a buyer, pricing your home according to data...and the right data, at that...is crucial to making the sale.

At BRG, we're committed to giving you the most recent, relevant information available regarding home sales in the Myrtle Beach area.

Use our 

Neighborhood Market Value Reports

to find the most recent sales figures in your neighborhood.

And call us for a no-obligation, no hassle estimation of your home's current market price.

843.883.8800