Here are a few steps to follow and a few questions to answer before pricing your home. With these simple pointers, your home will sell as quickly as possible and for the highest possible price.
1. Your point of view doesn’t matter to potential buyers. This is a very hard thing for sellers to accept. You need to distance yourself from the property. Buyers don’t care how much you paid for your property, how much better your house is than the one that sold next door, or how much you spent on the upgrades (hardwood floors, paint, landscaping, etc).
2. Get a CMA (Comparative Market Analysis) from a Realtor. This will show you recent sales, pending sales, current active listings, and properties that didn’t sell in your area. This is the perfect way to narrow down a realistic price range for your property. Pricing it properly from the start is a must. Most properties get the most showing activity when they are first listed. If you are priced too high, the right buyers won’t see your home. Don’t be fooled by an agent who charms you with promises of an unrealistic selling price. Acquiring the listing of your home at a price outside of your CMA is common practice with many Realtors. Once they have you in an agreement and your property isn’t showing, the agent will simply attempt to persuade you to lower your asking price to what it should have been in the first place.
3. Be realistic with your time line. If you decide to list your property at a value on the high end of your price range, your home will most likely sit on the market for a longer amount of time. If you price on the low end, you give yourself a much better chance of selling quickly.
4. Research your neighborhood by going to open houses and try to be as impartial as possible. What does another home have that yours doesn’t? Lot location, home size, and condition of the property will all come into play when buyers are searching for homes. Just like when you bought your home, potential buyers will compare what else is available in a certain price range. If all asking prices were the same, which house would you buy? If the answer is not your own, what can you do to change that?
5. What are market conditions doing? How long are homes on the market? Are prices going up or down? What time of year is your home going to be on the market? How are interest rates? Is the economy good or bad? Is it a Buyers market or sellers market? Is the local job market growing? These are all questions that will determine how much buyers are willing to pay for homes or condos.
6. Offer incentives. Offering owner financing, home warranties, or flooring allowances are just a few incentives that could be offered to attract buyers. Another is offering to pay closing costs. Many buyers have the credit & income but do not have the initial investment needed to purchase a home. Offering to pay closing costs could attract a number of buyers who otherwise could not afford to get into your home.
If you follow these steps and are impartial in your assessments, you will price your home correctly. This will lead to selling it quickly and for the highest possible price.
Also, don’t forget to check out my article about preparing your home to sell.