When selling a home, few things are as important as finding the correct listing price. Price your home too high and you may see delays, lose leverage and face the stress that comes from inaction. Price it too low and you may be leaving money on the table and feel cheated by the entire process.
Because of this dichotomy of emotions, it imperative that a great deal of thought and research go into your pricing decision. Five tips can help.
Takeaways:
Properly pricing your listing is crucial to selling your home in a timely manner
Many factors can impact your listing price
Five tips can help you reduce your timeline and maximize your sale price
1- Research the Market
Begin with a search of active listings and recently sold properties in your area that are similar to yours. Consider how your home stacks up with those currently on the market or recently sold.
Remember, many factors can go into pricing a home, well beyond square footage, number of bedrooms and bathrooms. Items like home style, updates, timing of listing and location all play a role. Typically by pulling several comparable listings, you can understand a ballpark estimate for your home.
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2- Understand Each Price Point & the Competition
Selling a home is unique in that you know exactly who your competition is and have ultimate transparency into price. Use this to your advantage. Armed with a price range for your home that is supported by comparable listings, consider how your listing might fare at various price points that are both high and low. What would make your listing stand out from the crowd? Where might your listing struggle to compete? Remember, round numbers often set buyer expectations regarding updates and what is “move-in ready”. Understand what those are and ensure that you price accordingly.
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3- Consult a Professional
The best piece of advice is to hire a professional who knows your area well and has an active business dealing in homes like yours. They will bring a level of objectivity to any pricing discussion that a homeowner can sometimes lack. They will also come armed with comparables, a valuation and justification for the numbers they choose. A local agent will be well-versed having walked through 100s of home. They will use this knowledge to help you understand not only the market, but your individual home’s selling points and shortcomings. This will include upgrades that can change your number.
4- Prep Your Home for Market with Cost Effective Improvements
By now you should have an idea of the price you plan to ask for your home. Consider carefully other listings at this price point. Your job now is to look critically at your potential listing and address anything minor that could impact your sale price. Your agent can help you determine which updates are both crucial and cost effective. These could involve updating an older home that may be seriously dated, or simply executing minor updates to prep for a sale.
5- Set a Number and Stay Active in Pricing
The final piece of advice is to not let a pricing decision become final. You must remain active in any strategy. Pricing a home is more art than science and being flexible in updating your price and adapting to the market is imperative to selling your home. As you move through this process, an agent can help you understand activity levels, feedback received and how the market may have changed.
The Bottom Line
The best way to get your pricing strategy right is to consult an expert. Zachary Adams and Associates know the West Metro area well and are well-versed in pricing homes that move while also maximizing sale price. A free consultation and walk-through of your home is a great start. Contact us today to get started.
