When it’s time to sell your home you want to price it right so it will sell fast. How do you decide what the list price will be?
Your Real Estate agent will guide and advise you on current market conditions and suggest a starting price range. How do you decide on a list price that will get your home sold?
- Compare the prices of similar homes to yours that have sold recently. This seems easy enough, but too many home sellers price their homes by comparing homes that are currently for sale instead of what has sold recently. The reason this is flawed logic is because if the current listings were priced right they would be under contract. They are lingering because they are priced wrong. If you want your house to sell, price it based on recent sales.
- Don’t over value your upgrades. People have a tendency to overvalue upgrades they have made to their home. Sure you paid a pretty penny to upgrade the kitchen and replace the flooring in the house, but the buyers are comparing your upgrades to other homes with similar features. You rarely get a return equal to the cost of an upgrade when selling your house.
- Don’t base the sales price of your house on how much money to you need to net after the sale. Sometimes sellers make the mistake of pricing their home based on the amount of money they need to purchase their next home, not the actual market value of the home itself. Buyers are going to place an offer on your house based upon what the market value of the property, which is also how an appraiser will value the house as well.
- Don’t rely on the automated value found online (such as the “Zestimate”). These pricing tools are not accurate, they even tell you that on their website. They use a computer to calculate the price based upon all area sales, not comparable properties.
- If your home has been on the market for a little while and has not sold it is time to re-evaluate your pricing- the market is telling you something. Have you had a lot of showings and no offers? Or maybe you’ve hardly had any showings? What is the market telling you?
Following these tips will help get your home sold!