Reducing the price of your home for sale may not be in your game plan. Not only can reducing the price cut into your bottom dollar, but it can also make sellers look desperate to offload their property. However, when you price your home properly from the get-go, you increase your chances of selling without reductions and without price-related delays. Here are some tips for pricing your house right the first time.
Real estate is subject to market trends. Market trends heavily influence the value of property. If there are fewer houses than buyers, a higher price on your house may pay off. However, if there are too many houses and too few buyers, you’re at the mercy of the buyers who have plenty of options from which to choose. A seller’s market indicates low housing inventory whereas a buyer’s market signals high competition. Understand and research the real estate market before you list your house for sale. If you’re not willing to lower your initial asking price to compete with other houses in your area, consider holding off selling your home until the market shifts in your favor.
There is the possibility that you will not earn a significant return on your investment. As market trends and interest rates shift, so does the value of your home. Your house in today’s economy may not be worth the same price you paid. When you price your house based on your desired profit rather than comparative value, you may find yourself reducing the price over time, or experiencing lengthier stays on the market.
Online calculators and home valuation tools are good for gathering a general idea of what your home may be worth, but they are not all-encompassing and leave plenty of room for error. If you’re curious and want a place to start, these tools are okay, but should not be used as a guide for pricing your home to sell.
Your real estate agent will provide you with a CMA, or a comprehensive Market Analysis. This report details recently sold homes in your area by size, features, and price. Although you could drive around or investigate the asking price for properties in your area, asking price and sales price are too very different things. Asking price is what the seller hopes to obtain, whereas selling price is what buyers are willing to pay.
Once you have your comprehensive market report, it’s okay to personally explore the competition. Find houses for sale in your area that are similar to yours. Compare the condition of those houses to the house you’re selling. Imagine yourself as a buyer viewing the competitor’s houses and then your own. Which house is in the best condition and fairly priced? If your house isn’t up to par with other houses being sold in your area, consider ways you can increase the perceived value.
Small upgrades can make a huge difference. Consider replacing light switch and socket covers, faucet fixtures, screens, toilet handles, door knobs, and other “cheap fixes” that can help make your house look well-maintained.
To further understand the true value of your property, consider working with an independent appraiser. The appraiser considers not only recently sold homes in your area, but will also assess the condition of your property, landscaping, upgrades, and the quality of the area your house is in. Appraisers tend to work in $500 increments, so tiny upgrades could increase your home’s value substantially.
Consider providing warrantees, instruction manuals, and receipts for any recently upgraded appliances or significant repairs to the home.
As harsh as it may seem, there is not sentimental value in your home for potential buyers. Regardless of how many memories you’ve created in your home, those priceless moments do not translate to dollars in real estate. Try your best to detach emotionally from the transaction. Buyers want to make their own memories, not pay for yours.
Best practice is to combine these pricing strategies. Use the home valuation tools and calculators, but back those up with the expert opinion of your real estate agent. Enhance your home’s visual appeal by implementing minor upgrades. Consult with an independent appraiser to have your home’s value properly assessed. Understand the market trends and detach from sentimental value and return on investment. Following these steps could position you to get the best price for your property, and shorter stays on the market.
Your real estate agent is the best source of information about the local community and real estate topics. Give Marbelia Murillo a call today at 704-622-0602 to learn more about local areas, discuss selling a house, or tour available homes for sale.