How to price your home to sell is a big deal and there are a lot of factors to consider. Sure, you’d like to get as much money as possible, but if you overprice it, you risk seeing our property sit on the market with no offers. On the other hand, if you price it too low, you might end up with low offers that don’t meet your needs. Here are some tips to find the sweet spot.
The importance of pricing right
The period of best opportunity for selling a home at a good price is the first 2 to 4 weeks after it is put on the market.
If your house is priced right from the first, you are in the best position to attract the maximum number of potential buyers able to pay the price your home is worth.
If your house is priced too high, buyers are apt to be few and far between, with little chance of any offers to pay your unrealistic price. You may lower your price later, but by then you will have missed many of the most interested buyers… and time.
If your house is underpriced, you may be swamped by non-serious buyers and too low offers that don’t meet your needs.
Hire a PSA agent
One of the biggest reasons buyers and sellers should work with a real estate professional is their local knowledge and it is especially true with a Pricing Strategy Advisor agent (PSA). This way, you know you are working with a real estate agent that knows how to more exactly price homes. They know how to value your property more accurately — whatever the condition.
As we move towards a more balanced market, pricing a home accurately is going to be critical for both sellers and real estate agents. A PSA certified agent is useful by making the closing process better and reducing your risk of a transaction falling through. Because, as we know, deals can fall apart because of an appraisal.
Moreover, online valuation tools like Zillow are only a starting point for pricing your home to sell. They won’t give you all the information you need in pricing your home, and they use limited data.
That is why a Pricing Strategy Advisor agent is the best choice: he/she will be able to lead you to an ideal valuation of your home that will help it sell in the appropriate time while maximizing both profits and time on market.
Tips to how to price your home to sell
Study your comps
Comparables are homes similar in size, amenities, features, structure, and age to your own that recently sold in your area/neighborhood. Real estate professionals and appraisers use comps as a reference point for the subject home and then make dollar adjustments. A CMA, by analyzing a group of 5 or 6 comps, provides clarity around how your home equates to the competition in the context of other relevant market trends.
Don’t overvalue your renovations
Even you have spent a lot of dollars in this new kitchen countertop, the buyer may not like it and want to change everything. While some upgrades may increase our home’s value, it’s unlikely you’ll get back the full dollar amount that you put in.
Think like a buyer
What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. The property facing the street is going to be a tougher sell than the waterfront one. Also, talk to your agent about current buyer trends.
If no one ask for seeing your home or if you receive feedback that you are priced too aggressively, don’t hesitate to adjust your price. If a house is on the market for too long, interest is lost quickly. Even if the price is lowered after, the initial rush of buyers is over.