Many home sellers are confused about how to price their home to sell. It’s definitely challenging to try and find that sweet spot between pricing it low enough so it flies off the market without undercutting the home’s value.
Emotions play into the decision, too. If the seller has a lot of sweat equity in the home, or the property is the only place the children have ever called home, owners may tend to place a higher value on the house.
Here’s how to correctly price a home to sell in any market.
Rely On Your Real Estate Agent
Your Realtor is an expert in all matters related to home buying and selling. They have a vested interest in selling your home within a reasonable time frame. As such, they provide a valuable, objective perspective that you should closely pay attention to in order to correctly price your home to sell.
Look At Comps In Your Neighborhood
One thing that your real estate agent does is analyze the comparable properties in your neighborhood. Remember, what a home sells for in a nearby city doesn’t impact how to price your home in a neighborhood far removed. Your prospective buyers will also compare your home’s price to others they could buy in the same neighborhood.
Consider Special Features
Don’t discount special features that your home has, such as built-in shelving units, out buildings, a home movie theater, etc. These give you an advantage in that you can safely set your price a little higher than comparable homes without those features. Be sure your real estate agent mentions them on your MLS listing so buyers understand the higher asking price.
Be Prepared To Make Price Adjustments
Remember that you might have to come down from your asking price, so keep that in mind when you and your real estate agent set that number. Don’t expect that you’ll get exactly what you’re asking for unless you’re in a high demand area. When you give yourself some margin, you gain negotiating power you can use to make a sale happen.
Consider Your Own Finances
Pricing your home to sell is only one factor to consider. The larger equation takes your entire financial picture into account. Figure out how much you owe, how much commission you’ll pay and any sales concessions, if any, you’d be willing to offer a prospective buyer. This due diligence ensures you’ll be satisfied with the outcome after all the money has changed hands.
Pricing your home to sell correctly is a critical part of making the transaction happen. Remember that your real estate agent is the best judge of the best price point, but you can always point out the reasons why you’d like it higher or lower.
It’s important to plan out where you will live once your current property has sold. A great place to start is by obtaining a current evaluation of how much you can afford for your new property and getting your new home loan pre-approved with assistance from your trusted home mortgage professional.