The Most Helpful Tips for Pricing Your Home
When selling your home, attractive pricing and packaging are arguably the two most basic essentials. In the current real estate market, buyers have a lot of choices. In many areas, the shelves are simply overstocked. And since no two homes are the same, making that distinction between your home and the dozens of others is key. Where pricing is concerned, establishing that all-important asking price is part science and part art, and there are several things you should consider.
First, you and your real estate agent should identify (and agree on) the approximate value of the property. The next step is to understand the price range for the list price—depending on market conditions, competing properties, time of year or inventory. Once you know your home’s approximate value and have a price range in mind, it’s time nail down the final “list” price.
Here are five helpful things to consider in the home-pricing process.
1. Do your research and study past home sales.
This is the starting point for any thoughtful and successful pricing strategy; think of it as the "science" part. Take the time to study past sale statistics for homes in your area and areas similar to yours. None will be identical, of course, but having a clear understanding of true market value is the first step in establishing your list price.
Working with a knowledgable and experienced real estate agent who is familiar with the local market is helpful in this stage of the game to know if you're on target with your price range.
2. Don't overprice your home because you have time to wait.
If the market is appreciating, this strategy may work, but if prices in your area are declining, you may quickly find yourself chasing a market and costing yourself money. And if the market is stable? Your home will just sit. Buyers pay in today's dollars, and time is rarely on your side.
Given the high stakes of real estate, a buyer doesn’t want to be the only one interested in a house. By pricing your property on the lower end of the value range, you could stimulate interest among more than one buyer and create a herd mentality. Also, if you’re under the gun to sell quickly, this would be a good option.
3. Be flexible but also know your negotiation limits.
Pricing a home isn’t a “set-it-and-forget-it” procedure. A lot of factors can come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions or new information, you’re more likely to get the best price with the least aggravation.
Always try to work out a contingency plan with your real estate agent, in case the property doesn’t go for the desired price. By having everything on the table from the get-go, you’ll have a plan B should the first plan fail. This saves time and helps set the appropriate expectations, so there are no unpleasant surprises down the road.
4. Think like a home 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.
Talk to your agent about current buyer trends. Your price should reflect how your home compares to the others offered for sale. Buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the price is compelling.
5. Listen to your real estate agent's pricing strategy and advice.
Ultimately, listen carefully to your agent’s pricing strategy. It’s their job to know what works and doesn’t. And as with any strategy, be prepared to have an ongoing discussion about pricing with your real estate agent.
First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers. If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date.
By working together with your real estate professional, you'll be able to price your home competitively, give your home the positive attention it deserves, and grab the attention of potential buyers from the get-go.
Happy pricing and best wishes in the selling of your home!
Are you looking for help in pricing your home to sell in the Topsail, NC area? Let Century 21 Action Topsail work for you!
Talk with one of our experienced real estate agents today.