How to Price a Home to Sell
Home sellers generally want to sell their house for the highest price possible – and hopefully as quickly as possible. The key to getting the most out of your home is pricing it correctly!
The right price is the one that corresponds to comparable houses in your market. Prices that are too high or too low can lead to loss of profit and delays when you’re selling your house. Knowing how to set the right price will help you sell your home at a reasonable price.
These days, buyers across all price sectors research the market thoroughly before committing to a purchase decision.
Keep in mind that ultimately buyers, not you, will decide your home’s value.
So, what do you need to price your home for an ideal sale?
Do not overprice
Sellers often think that it’s OK to overprice. Your home will lose its worth if you try to price it too high just because you paid a huge sum for it.
The odds of an overpriced house getting ignored are huge!
It’s hard to gain a buyer’s attention if the first thing they look at is the price being too high. Your house will end up staying on the market longer than usual.
Price your house for what you can actually expect to get from your buyer. A real estate agent can help you evaluate the market and advise you to go against overpricing – or even under-pricing.
Improve the condition of your house
The buyer may reason that if you’ve done your homework on pricing your home, you’ve also done your homework on making sure the home is in good condition.
Here’s what you need to do to improve the selling price of your home:
Handle any deferred maintenance
Check the condition and appearance of your house. Cracked floors should be replaced and patch any holes in the walls.
Fix broken doorknobs, latches, cabinets, cracked or chipped sinks, and leaking taps in your bathrooms and kitchen to make them squeaky clean and new.
Don’t let bad smells, dirty floors, or dusty surfaces leave a bad impression on potential buyers.
Hire a professional photographer
Professional photography can make all the difference when it comes to pricing your home.
A professional photographer will help you bring out the best features in your house. Falaya helps you streamline this process, but booking an appointment with one of our premier partner photographers. Try to say that three times real fast!
Don’t wait longer than required
Willing to wait long enough and hold out for a good offer is a mistaken belief among many people. Homes mostly sell for the highest price when they are on the market for less than 30 days.
The most common fear among buyers is the duration for which a house has been on the market. It is the first thing they ask from their real estate agents.
Buyers ask this question for one reason: they want to know whether the seller has left some room for negotiation.
If your house has been in the market for way too long, buyers start to wonder why the house has taken so long to sell, and the value proposition of your property starts to decrease.
Review comparable listings
Buyers love comparing houses within their range. Which is why you have to become acquainted with the competition in your market.
To determine the price of your property, you should consider reviewing three similar properties that have sold within the previous six months and are similar to your property. Do this a few weeks before putting your home on the market.
Falaya offers the best advice for CMA in real estate! Just book an appointment online, and we will take care of the rest.
Understand the Market You’re In
If you’re in a market where demand from buyers surpasses the number of homes available for sale, you can then price your home a little higher than market value. But, if you are in a buyer’s market where the buyer has the upper hand, you may need to set the house price slightly below the market value to get people’s attention.
By setting the wrong price, your house might end up sitting on the market for a long time.
Much of housing demand depends on market conditions, but it is also affected by seasonality. Typically, late spring and summer are known as “purchase season” in most parts of the U.S. People are coming out of hibernation with tax refunds in hand, and the warm weather has them more willing to explore neighborhoods and attend open houses.
It’s also the season when people with children purchase a home, hoping to move and get settled before the new school year. This influx of home buyers creates more demand, which can drive up home prices.
Of course, there are regional differences when it comes to purchasing season. For example, if you live in a state with year-round sun and nice weather – like Florida or Arizona – you may see more demand in the late fall when snowbirds are in search of their new winter homes. Research your area to find the best time of year to sell or book an appointment with an Falaya agent.
Keep the price negotiable but don’t go too far
Buyers mostly like to negotiate when you’re selling a house. Therefore, instead of setting the absolute lowest price, it is better to add a little buffer. Buyers will need to come up with the down payment and closing cost to get the deal done. In some cases, this can get a great deal of money. There are numerous markets where sellers will be asked to give the buyers some closing cost support out of the purchase price. This covers some of the buyers out of pocket expenses, and allows them to close on the house. Sellers should keep this in the back of their mind when pricing the house.
Offering to cover closing costs while sticking to a slightly higher asking price just might help seal the deal.
Pricing your home properly is the most important consideration for getting your home ready for sale. If you get the price wrong nothing else you or your agent does matter. In fact, setting the right price is 75% of the marketing for your home.
Decide your house sale strategy
Once you are sure there is nothing else to learn about what price your house should be worth, you need to decide what strategy you use for selling it.
This is as much art as science – it is not only a topic of constant debate among estate agents but different countries have different approaches.
Your estate agent will have experience of what works locally, and you should certainly listen to their advice – but you should not feel compelled to accept it. A big factor though is how quickly you want to sell.
Is it ever smart to underprice?
Pricing a home that’s below market value usually isn’t preferable because you may be losing money. If time is more important than money and you need a faster-than-average sale, you may consider setting a bargain price to attract the greatest number of prospects.
Whenever you’re ready to sell your home, check out our services and book a Realtor price assessment through Falaya for $300 ONLY!