One of the biggest decisions that must be made when selling your home is determining the asking price. There is a direct relationship between how your house is priced and how many buyers show interest. Carefully consider all the following points before setting your asking price.
? Asking Price vs. Selling Price
Asking and selling price are two different things. Just because you are asking $300,000 for your home, doesn’t necessarily mean you will sell for $300,000. Depending on your location, be prepared to compromise on your asking price. You may also want to consider boosting your asking price to get the selling price you are seeking. For example, if you are wanting to sell for $300,000, and your market supports it, consider pricing your home at $320,000 to allow room for buyer and seller “negotiations”. By increasing your asking price, you are allowing some room for potential buys to haggle and feel like they are getting a better deal. Of course, if other similar homes in your area are selling for $200,000 and you are hoping to sell for $300,000, you may have to set more realistic expectations for your home sale.
? Determine Your Home’s Value
Many factors go into determining a home’s value. One of the key factors is location, location, location! A smaller home in a great area will sell for as much as, if not more than, a larger home in a less desirable area. Look online to see what other similar homes in your area are selling for – these are called “comps”. Take into consideration if the home is updated, the quality of the updates compared to other homes in the area, the home’s floor plan desirability, proximity to good schools, parks nearby, and the amount of land the property sits on. Verify your desired asking price is in line with the comps in your area or adjust your asking price according to what you see other homes are selling for with similar features as your own.
Pay attention to the real estate market and whether it’s fluctuating in favor of buyers or sellers. Ideally you will list in a “seller’s-market”. This means there is a shortage of homes on the market and those homes are selling on the higher end of the asking price.
Lastly, make sure to have your real estate agent note if there are big ticket items in your home that are newer: water heater, furnace, roof, or windows. Calling attention to these high-priced items, and the fact that they probably won’t need repaired anytime soon, will likely entice more buyers to justify spending a few extra dollars on a property that has updates.
?♂️ How Your Real Estate Agent Can Help
Your real estate agent is a wealth of knowledge on local home values. Capitalize on that by asking your real estate agent what they suggest when setting the asking price. They cannot ultimately tell you what to list your home at, but it’s very important to take their advice into consideration. If their suggestion is below or above your expectations, make sure to ask what factors they’re using to come to their conclusion. The more informed you are, the better decisions you can make throughout the negotiation process. Once your home is on the market, expect to continue the pricing conversation several times. The market fluctuates often and if you can adjust with the market well, you will be most likely to get the best price for your home.
? Set the Right Price from the Beginning
Setting your home at the right asking price can make or break your sale moving forward. Setting your asking price too low will certainly ensure a quick sale but may leave you in financially uncertain terms. Setting your asking price too high may scare away potential buyers from even setting up an appointment to view your home. Do your home value research ahead of time and set realistic expectations for yourself.
By following these simple steps, you can ensure you will sell your home in a timely fashion at a price you are comfortable with. Stay informed about the housing market in your area, and make well-informed decisions on when to list, and at what price to list, with the help of a qualified real estate agent