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Pricing Your Home To Sell

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It is a huge decision to sell your house. Getting to an agreement on the price of the home can be a difficult task. It doesn't matter if you work with an agent or list your house yourself; it can be difficult to determine the right price for your home. This guide will assist you in answering the question, "How much should my house sell for?"

Compare Comparable Sales Of Homes That Have Recently Been Sold

What Is Comparative Market Analysis (CMA), And How Can It Help You?

A CMA is a summary of the recent sales in your area if you are working with a realty agent. It includes details about your home, the days on the market, and the final sale price.

You can do your research online to get an idea of the value of your home if you are selling it yourself. You can also contact real estate agents to request a CMA. They are used to providing comps for potential clients and may not even have to visit your home. An independent appraiser might be worth your consideration. They can provide a fair market price for your home for a few hundred dollars.

 

You can do searches for comps by yourself, but you should note that similar properties should:

  • You should be within 1/4 to 1/2 mile of your home.

  • In the past three months, I have been listed.

  • Your property should be approximately the same age as others.

  • Your square footage should be within 10% of yours. If your home is 1,500 sq. feet, you should consider homes that are 1,350 to 1,650 square feet.

Learn From The Mistakes Of Other Sellers

To get an idea of the market value of your home, review expired listings in your area. Then, compare the original listing prices of homes that have been sold with their final sales prices. It took many price reductions to sell a home. Maybe it was too expensive, to begin with.

Do Not Let Your Asking Price Make You Look Like The Rest Of The Competition

Have you heard of price banding? Price banding is the act of looking at current inventory and finding a lower-priced price point. Sellers try to sell their homes at a competitive price, and prices tend to rise. If you see four homes in your area priced between $274,000 to $276,000 and you are looking for the next set starting at $290,000., then it is worth taking advantage of the $280,000 price range.

Avoid Obscure Or Century-Old Pricing

It doesn't matter if you sell a home or grocery item, but items priced below a century (meaning a nice round number) are more appealing to buyers. For example, $9.95 instead $10, $19.99 instead $20 and so forth. Your $299,999 house might be more appealing than if it was priced at $300,000. Pricing a house at a random, obscure number (like $123,456) can distract buyers and give a negative impression of the seller.

Online Search Price Ranges

You can find the range that your home falls within on many popular online real-estate websites. Many buyers have an idea of the price range they can afford or are interested in. For example, suppose your home is listed at $305,000. A buyer looking for homes between $280,000 and $300,000 will not be interested in it. However, a home listed at $299,999 will show up in their search results. They might even end up buying your home.

Try To Imagine Yourself As The Buyer

Although it can be difficult to let go of your emotional attachment to your house, selling it is a good idea. Take a look at the other homes that are selling for similar prices. Is it objectively more or less valuable than your home?

Note On Pricing In A Bidding Battle

There is a big difference between "How much should I list my house for?" or "How much can I sell it for?". Sometimes, particularly in large seller's markets, sellers will list their houses for a low asking price to drive up the final sales price through a bidding battle.

This strategy is possible, but there is always the risk that the financing will not go through for your highest-priced deal. This is especially true if your home does not appraise at the amount offered. If this happens, it can jeopardize lower offers, and buyers might wonder if your home has a problem that caused your deal to fall through.

Before deciding on which offer to accept, be sure to examine all aspects of the offer.

After Listing, Don't Be Afraid To Reduce The Price

Sometimes, even with all your research, you might find that the price you have listed is too high. It's not uncommon to see price drops. According to a report, 64 percent of sellers have reduced their prices at least once. Therefore, it is important to quickly recognize when you have overpriced and adjust accordingly.

Do not allow yourself to make small price adjustments over time. Older listings are less appealing to buyers. Your goal is to sell fast. It is always better to make a major price adjustment upfront.

Ask For A Second Opinion From An Expert

Agents are experts in pricing properties and keep an eye on the local market. In addition, agents are experts in local buying trends and can give you an insight into the value of your home compared to other homes for sale. If you are having difficulty finding the right price, it might be worth hiring an agent. 

How To Price Your House For Today's Housing Market

These are the top tips to help you sell your house at the highest price:

  • Seasonality:

    Spring is the best time to sell your home. The weather is getting better, and people want to move while they are on summer vacation. Fall is second best because most people have returned from summer vacations. Winter is the slowest season due to bad weather and people being busy with the holiday season. The best time to sell varies from one city to the next.

  • Inventory:

    Economics 101 taught us the basics of supply-demand. This is a great lesson for real estate. You'll struggle to get the price you want if your home is among 20 others in the same neighborhood. This is because supply exceeds demand. If it's a hot area and your home is one of only a few available, you might be able to get the asking price or even more.

  • Buyer's Market:

    Because there are more homes on the market than buyers, your price should be slightly lower than your competition.

  • Seller's Market:

    A seller's market is where you can increase your sales by about 10%, as there are fewer homes for sale and more buyers.

  • Neutral Market:

    A neutral market is one where there's a balance between buyers and sellers. To ensure that your pricing is comparable to other similar properties in the market, monitoring nearby comparables is important.

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