When pricing your home, you may consider the price you originally paid, add a substantial markup and presume you’re done. This would be a grave mistake; one that could wind up costing you thousands or end in no sale at all. In order to price your home to sell there are many things that should be considered:
Obtain A Few CMA’s (Comparative Market Analysis):
When interviewing agents, you should obtain CMA’s from each agent offering an idea of the price your home should sell. A CMA details the prices of similar homes recently sold, on-the-market homes as well as homes that simply did not sell in your area.
Be wary of agents attempting to “buy” your listing. An agent practicing this technique will often sweet-talk you with their elevated price recommendation waiting only a few weeks to insist on a price reduction. Be mindful: a home on the market for extended periods become less saleable. People begin to wonder if there are significant defects with the property or whether the seller is truly motivated.
Some agents suggest under pricing your home hoping to start bidding wars amongst hungry home buyers. While this technique may work to an extent in some markets, it is often a wiser decision to market your home at an appropriate price from day one.
Calculate the Price per Square Foot
The average square feet of homes in your area can be considerable help in determining a proper listing price for your home. However, it is not recommended you rely on this tidbit of information solely.
Evaluate Market Trends
How quickly are homes selling in your area? Are prices increasing or decreasing? Are you in prime selling season (typically during spring) or attempting to sell in the drooping winter season? How many offers are sellers typically receiving once on the market? These are only a few of many questions that your agent can help answer.
What Major or Minor Problems Exist Within Your Home?
If you’re in a sellers market you may not need to worry about fixing most problems in your house. Buyers are much more open to problematic homes when they are having a tough time finding one in the first place. However, if you’re in a buyers market it would be wise to fix as many problems in the house as you’re financial able to.
Either way, a home with problems will not generate as much value as a home in almost perfect condition (no home is perfect!). An advisable solution would be to evaluate the potential cost of repairs. Determine whether these costs could be recouped during the sale of your property. It is certainly worthwhile to consult your agent as well as other professionals for matters such as these.
Add an Incentive
Often, buyers come to the table with terms that some sellers are not open to accept. Some include quick sales, lease-options, or asking that closing costs be paid by the seller. If you are motivated to sell offer something up front to attract buyers that may be interested in such terms.
Reaching a listing price can be tricky; however, using reliable information with personal feelings aside, you can reach an acceptable agreement.