Determining the right listing price for your home can be tricky. While you definitely want to get the most out of your investment that you can, you also want to make sure that you don’t turn away potential buyers from considering your property. There are several steps you’ll want to want to take before putting the “For Sale”sign in your front yard.
Do your research:
Venture out to popular Internet listing sites to find the estimated value of your home and the price range of currently listed comparable homes in your area. Be sure to compare home amenities. If you are unsure what your home’s amenities are worth to buyers, research that as well. Many Internet listing sites provide calculators that will assist your in doing so. You will also want to evaluate recent sales of comparable homes in your area. Your local market weighs heavily on the value of your home.
Utilize your agent:
Real estate professionals are contending with a wide array of both sellers and buyers at any given time, and an experienced professional has previous market knowledge to rely upon as well. You should also take your agent’s recommendation for an appraiser, as your appraisal will be key in pricing your home. If your agent is recommending this individual, he or she has had positive experiences with this person in the past. Remember, your real estate professional is there to support you through every step of the home sale process, and his or her ultimate goal is to get your home sold.
Evaluate the time of year that you are going to be posting your house listing. Even in areas that don’t necessarily experience severe seasonal weather changes, there are other factors that affect buying patterns such as school year calendars. You will also want to consider current mortgage rates and real estate tax rates for your area. Both are monetary factors that buyers must assess when deciding their monthly housing allocation and subsequently their purchasing power. Local inventory should also be taken into account when establishing your listing price. We’re all familiar with supply and demand — if there is an influx of home availability in your neighborhood, buyers will many other options besides your home.
Have a strategy:
Determine your bottom line selling price early on, and have that discussion with your agent. Based on that amount, begin with an initial listing price that allows room for negotiation but doesn’t out-price your home for its location. You also want to be strategic in choosing a price that will be returned in as many Internet searches as possible. Typically listing sites ask for a price range as a search parameter. If comparable homes in your area tend to be in the $150,000 to $200,000 range, pricing your home at $210,000 may exclude it from many buyers’ search results. The more interest you can draw to you listing, the quicker your home will move.
When going through the process of selling a home, pricing will be an on-going discussion. You will want to reevaluate all of these items often to ensure that your listing remains competitive. Choosing a seasoned real estate professional will alleviate much of the stress of home pricing. When you are working with someone who has extensive knowledge and understanding of your market, that person will be your best resource in pricing your home to sell.