It’s no secret that pricing your home is one of the most important aspects of selling it. After all, if you price it too high, you could end up sitting on the market for months or even years. But if you price it too low, you might end up leaving money on the table. So, how do you find that delicate balance?
Make Sure Your Home Is in Excellent Condition
The first thing you need to do is make sure your home is in excellent condition. After all, buyers are going to be looking at plenty of homes, so you want yours to stand out from the rest. This means fixing any and all cosmetic issues, such as cracked walls, peeling paint, stained carpets, etc. It also means making any necessary repairs, such as a leaking roof or faulty electrical wiring. If your home is in pristine condition, buyers will be more willing to pay top dollar for it. But if it needs work, they’ll lowball you on the price.
Home Valuation Calculators
One of the first things many people do when trying to price their home is to use one of the many online home valuation calculators. However, it’s important to keep in mind that these calculators are not always accurate and shouldn’t be relied upon too heavily. The way they work is by calculating data like recent sales of similar homes in your area, square footage, and other factors. But they don’t always take into account things like upgrades or special features that your home might have.
Your Real Estate Agent
One of the best resources you have when it comes to pricing your home is your real estate agent. An experienced agent will have a good idea of what similar homes in your area are selling for and can help you come up with a competitive price. They will also typically do something called a comparative market analysis (CMA), which takes into account recent sales of similar houses, as well as current listings, to come up with a suggested price range for your home.
With a CMA, you’ll have a snapshot of each home’s original asking price, when it was listed, how long it stayed on the market, how many times the price had to drop, and its final sales price. This information can give you a good idea of where your home should be priced in order to be competitive.
Tour Houses for Sale in Your Area
Another great way to get a feel for how much your home is worth is to go on a tour of houses for sale in your area. This will give you a chance to see first-hand what buyers are looking at when they’re searching for a new home. It will also give you an opportunity to see what features homes in your price range are offering and help you determine if your home is priced correctly.
Get a Listing Appraisal
Once you’ve done your research and have come up with a price range that you’re comfortable with, it’s always a good idea to get a listing appraisal. This is an appraisal that is done specifically for the purpose of listing your home on the market. It will give you an official value for your home that you can use when marketing it to buyers.
A listing appraisal is different from a regular appraisal in that it takes into account things like recent sales of similar homes, current market conditions, and any special features or upgrades that your home might have. This information is then used to come up with a suggested list price for your home.
Increase the Perceived Value with Minor Upgrades
Even if you’re not planning on making any major renovations to your home before selling, there are still a few things you can do to increase its perceived value in the eyes of buyers. Something as simple as painting the walls or updating the light fixtures can make a big difference.
Minor updates, such as changing out faucets, light fixtures, doorknobs and locks, electrical socket covers, light switch plate covers, window screens, door screens, and weather-stripping, can also add value.
Updating or installing new hardware in the kitchen and bathrooms is another great way to add value without spending a lot of money. Something as simple as changing out cabinet pulls, drawer handles, and towel bars can give these rooms a fresh look that buyers will appreciate.
Another way to increase the perceived value of your home is to declutter and stage it before putting it on the market. This will make it look its best and help potential buyers see its full potential.
List in a Sellers' Market
If you’re selling in a sellers’ market, you’ll have the upper hand when it comes to pricing your home. In a sellers’ market, there are more buyers than there are homes for sale. This gives you the power to be a bit more aggressive with your pricing because buyers will be competing against each other for the limited number of homes on the market.
In order to take advantage of a sellers’ market, it’s important to price your home correctly from the start.
Conclusion
When it comes to pricing your home, there are a lot of factors to consider. But by doing your research and working with an experienced real estate agent, you can come up with a competitive price that will attract buyers. And by making a few minor updates and staging your home before listing it, you can further increase its value in the eyes of potential buyers.
