Did you know that on average, a home in the United States will sit on the market for more than 56 days before selling? Whether you need to move immediately or just want to speed up the selling process, pricing your home the correct way can make a big impact. But have you ever wondered what pricing my home has to do with making a sale?
Does the listing price matter more than anything else? How do I know the right number to choose? What factors should influence the decision?
Besides doing the research and using the right tools, pricing your home takes skill and insider knowledge to get right. Read on to discover the best tips you need to know before listing your property.
Do Your Market Research
Have you conducted a thorough market analysis of homes in your area? Market research such as home comparables will reveal what other similar properties have been listed and sold for. These numbers can guide your pricing strategy and give you more clarity around the listing price.
Market research may also reveal special advantages or disadvantages that you can capitalize on. For example, does your home have an extra full bathroom? You may be able to increase your ask price.
Contrarily, if your home lacks space or an amenity, this may result in a lower listing price. But for the right buyer that slightly lower price may actually make your property more competitive in the market. This is why the research stage is so important to gather valuable data to make pricing decisions.
Use the Right Tools
Doing all this research can feel exhausting and overwhelming. If you lack real estate insight or basic knowledge you may feel at a standstill.
Don’t reinvent the wheel and use the right tools to do the work for you. Check out this home valuation tool to get started. This tool can help price your home stress-free.
Talk to Neighbors and Friends
What’s one of the best ways to keep your pulse on the local real estate market? Talk to your neighbors and friends who have been through the process of buying or selling a home! Their insight can reveal important data or information about home values in your area.
For example, your neighbor’s home may be similar or identical to your property. Ask about their selling strategy and best practices to get your property moving.
Alternatively, if you know buyers in your area, ask what’s on their wish list and get insight into which listing range they are searching. This ensures your house price matches buyers’ expectations.
Consider Upgrades
If you’re set on a particular listing or sale price, you may need to get realistic about the demands of the market. You may have to consider upgrades or renovations to list your property at a higher price point. For example, you may have the square footage to demand a certain list price, but your home may need updating.
Buyers today appreciate finished and modern kitchens and bathrooms, finished basements, and luxurious amenities like built-in closets or extra storage. While these renovations will be an upfront cost, you may be able to increase your profits when it comes time to sell. Alternatively, if you don’t have the budget or interest to take on a renovation, you may have to lower your list price.
While this may appear to be a loss, you are being honest and upfront with potential buyers about the state of your property. This realistic expectation can help you avoid disappointment and sell your property quicker.
Pricing My Home the Right Way
Setting a listing number is an art and a science. Besides all of the above factors, you have to think about how buyers perceive your number and how they search for your property. For example, $499,999 is merely $1.00 less expensive than $500,000.
But, the first number sits in the 4k range which opens up your property to a wider range of buyers who are maxed at 5k. Additionally that number “appears” to be less. Psychologically this can influence buyers to action and make them more interested in seeing your property and eventually putting in an offer.
If you want to cast a wider net and get as many buyers’ eyes as possible on your property, consider these “price ranges.” This ensures you won’t cut out a potential sale.
Consider the Buyer
Selling your home can feel like riding an emotional rollercoaster! You may have made special memories in your home. Or, you may have invested a lot of time and money into making it your dream oasis.
But, remember that the buyer won’t see your home through rose-colored glasses. Buyers don’t have the same emotional attachment to the home as you the seller does. Therefore, it is important to consider the buyer in this transaction, their viewpoint, and their needs.
While that bathroom tile imported from Italy may have been a luxurious expense, the buyer may view it as outdated and not worthy of a listing price increase. Potential buyers want value. Therefore, it is important to price your home without emotional influence or attachment.
Prices Can Change
Don’t consider your listing price set in stone. While the published price may take a lot of research and thought to get right, you can always make changes at a later date. For example, has the property been on the market for some time without interest?
Has the real estate market in your area seen a dip in buyer interest? It may be time to lower the price to encourage buyers to submit an offer. Knowing that you can always just your home listing price should give you peace of mind.
Price Your Home To Sell With These Tips
With these tips, you won’t ever have to question: am I pricing my home the right way? While pricing your home is no small feat, the right listing price can encourage buyers to see the value of your home. That home value can translate to full ask price and perhaps even more if there is enough demand.
Remember to do your market research and use the right tools to establish a listing price. And in the end, your listing price can change according to market demand. It may be worth looking for a real estate investor like The Local House Buyers to get an estimate of how much can you get for your house.
Did you find this information helpful? Check out our other real estate stories.