So, you’ve decided to sell your home and embark on a new adventure. You’ve meticulously maintained and loved your home over the years – thoughtfully making improvements along the way. Now it’s time to set a price and while you don’t want to be greedy, you want to get every penny of it’s worth.
Unfortunately, potential buyers don’t often appreciate how long you spent re-landscaping or choosing the perfect countertops. To the buyer, those items may not matter to the value of the home, even if we think they should.
When it’s time to sell…it’s imperative to price your home right: not too high, and not too low – using tangible factors – in order to get every penny we can. Here are the rules to remember when pricing your home to sell for the best price…and quickly!
1) Price is King
First things first – the listing price you choose is the number one factor in how long your home will sit on the market.
Pricing too high: this may reduce the number of buyers that visit, which can cause your home to sit on the market too long…and potentially end up getting lower offers than if you had priced it right the first time.
Pricing too low: this may sell a home quickly, but that route obviously leaves money on the table.
Pricing it just right: this builds the momentum required to get qualified and motivated buyers in the door and writing offers. Despite what HGTV wants to tell you – as much as remodeling this or staging that can help…it’s important to understand that remodeling or staging exists to support your listing PRICE…so get the price right and let the rest of the preparation follow accordingly.
2) Let the Sold, Under Contract, and For Sale Homes Guide You to Your Price
- Use recent comparable sales to see what the closest homes have been selling for. Also check their price history…did they have to do a price drop? How long were they on the market?
- Look up homes currently under contract to figure out what price-points enticed buyers to make offers on homes that haven’t even closed yet.
- Tour Active Listings to see how your home matches up to the homes that potential buyers will also go look at.
Analyzing all 3 of these segments will give you an idea of what you can expect and where to price your home in order to generate interest based on the other types of homes that buyers will be looking at.
When considering special improvements to the property, honestly consider whether extra custom expenses are going to be justified to a buyer. Choosing Fir flooring over Oak flooring may have been worth the extra expense to you…but will most buyers also think so? Don’t be surprised if the market doesn’t place a dollar-for-dollar value increase on the improvements you made…in fact, most remodels or improvements don’t recoup their full cost.
4) Market Trends
As an active agent, I can certainly help give you an idea on the pulse of a market for your particular neighborhood. Depending on inventory, price trends, new development, interest rates, and job growth – supply and demand may be the difference between pricing your home $10,000 higher or $10,000 lower to help you capture a buyer and the most profit out of your sale.
If you have any questions on how to accurately price your home for a smooth sale, please don’t hesitate to reach out!