No matter what else you do to prepare when selling your home, pricing the home correctly is often the single most important factor in attracting the right buyer. Price the home too high, and it can be nearly impossible to get a competitive offer. Go too low, and you may be leaving money on the table when it’s time to close the deal. Fortunately, picking the right price is mostly science, and you can jumpstart the process with our guide for how to price your home like a pro.
- Avoid the Temptation to Overprice
Perhaps the most common mistake when pricing a home is setting the price too high, and that can happen for a variety of reasons. While it’s true that it only takes one buyer to meet your price, finding that one buyer can be nearly impossible if your price is well above the market. That goal should be to set the price as close to market value as possible, in order to attract the best offers. - The Difference Between Real and Sentimental Value
When pricing your home, it’s easy to fall into the trap of overpricing based on the sentimental value of the home. No matter how many great memories you’ve created in the home or how much you’ve come to love the quirks of the property, buyers are focused more on the real, concrete value of the home. Always try to separate sentimental value from actual value when setting a price. - Rely on Your Real Estate Agent and Comparable Sales
The good news is that you’re far from alone when selling your home, and your real estate agent should be an invaluable resource when setting a price. Your agent can provide a comparative market analysis (CMA), which looks at comparable sales to determine the right price for your home. By understanding what local homes like yours are selling for, you can choose an appealing price based on hard data. - What You Can Learn from a CMA
How does a CMA help you arrive at the right price? The goal is to look at homes that are nearly identical to yours based on square footage, floor plan, amenities, and location. You’ll be able to see what similar homes are selling for and gain an understanding of how long overpriced homes are sitting on the market. The closer you set your price to the home’s true market value, the easier it is to find a buyer. - The Benefits of a Lower Price
You don’t want to list the property for a bargain price, but going slightly lower than market value can actually result in better offers. A slightly lower price can attract multiple opening offers, leading to a bidding war and stronger final offers. - Be Willing to Adjust If Necessary
Following the data and relying on the help of your real estate agent should help you arrive at a price that gets your home sold, but no process is perfect. If your home is sitting on the market longer than you’d like, then it’s important to be willing to adjust. Your real estate agent can help you take a second look, and adjust to the realities of the market.
While there’s no one way to set the perfect price when selling your home, the most important factor is to rely on the expertise of your real estate agent. With a comparative market analysis and a deep understanding of your local real estate market, you can choose a price that gets your home sold while meeting your financial goals.
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