Knowing what things cost and what they are worth is tricky business. And in the world of residential real estate, its fluidity depends on so many variables. How you price your home for sale is a critical decision that has a lasting impact on the success of its sale. While some of the nuances are dependent upon events outside of your control, there is a strategy behind the science of determining your house’s correct cost.
Here is a straightforward list of Dos and Don’ts to consider in conjunction with the professional knowledge provided by your REALTOR®:
Do your research: Research the local real estate market to understand the prices of comparable homes in your area. Pay attention to what is going for sale in your neighborhood. What have those neighbor’s done to their house to increase its value? How does your house–and take off those rose colored glasses–compare?
Consider hiring a professional: A real estate agent can provide you with valuable insights into the local market. That’s one of the most essential skills a REALTOR® will provide–the ability to help you price your home competitively. Your REALTOR® has the expertise to investigate recent sales in your area to determine reasonable comps.
Price it right from the start: Setting the right price from the beginning can generate interest and attract potential buyers. Price the house too low, and you may never get what you want out of your investment. Price it too high, and you may never get anyone who feels they can afford to buy it, let alone even look at it.
Be flexible: The market changes. So should, most likely, your expectations. Nothing is better than having your home sell quickly. That’s the dream. However, you need to be prepared to adjust your price based on market conditions and feedback from potential buyers. As a friend once told me, there’s a lid for every pot. You want to sell; someone out there wants to buy. A good REALTOR® will help you find each other, and they will help you adjust expectations as needed.
Be transparent: Disclose any known issues or repairs needed to potential buyers to avoid any surprises during the negotiation process. Consider having an inspection done on your home so that you know the problems in advance. Your REALTOR® will advise you on what to address and what to leave for the bargaining table.
Don’t overprice: The last thing you want to do is overprice your home for sale. If it sits on the market too long, this has the potential to negatively impact your chances of selling your home.
Don’t let emotions drive your pricing decision: Yes, you love your home. Yes, it’s personal because there are memories involved, but while your home may hold sentimental value to you, it’s important to separate emotions from the pricing process. Selling your home is, first and foremost, a financial decision.
Don’t ignore the competition: Know what’s out there and be aware of the prices of similar homes in your area and adjust your price accordingly. This is a competition, and you want your house to win.
Don’t rely on online home value estimators: These tools can provide a ballpark figure, but they often don’t consider the unique features and condition of your home. Guesstimates will not sell your home. Pricing your home will be unique to the home, the neighborhood, and the market. These are variables home value estimators may struggle to adapt to in their standard formulas.
Don’t be too inflexible: It is generally expected that there will be some negotiation on price, especially if your home has been on the market for an extended period. Your job now is to trust your REALTOR® and be fluid enough to adjust as needed.
Pricing your home correctly is a crucial step in the home selling process. By following these dos and don’ts, you can set the right price and increase your chances of a successful sale when you have the right REALTOR® on your side. And the Yosha Snyder Group is right there with you–waiting to help guide you through the process.