The most important thing to do when selling a house is pricing it correctly and fairly. You don’t want to overprice the house because you will lose the freshness of the home’s appeal after the first two to three weeks of showings. People will just not put an offer in if it’s not fairly priced. Pricing it low, on the other hand, will give you and the buyer wiggle room in the negotiations process.
While considering price ranges, we suggest that you take these rules of thumb and consider them as you come up with a price for your property.
It is important to know and understand the listing prices in your area. Why are some properties low and some high even if they are in front of each other?
We suggest that you go through the history of the homes in your neighborhood and think about your home in relation to that data.
Look at listings from your area in the past six months and look for the following:
-Distance and proximity to central locations. Are there homes close to major streets, freeways or railroads? Is your one them? Homes that are close to main intersections will have a much higher price that those that don’t.
-Compare the age of the homes. One neighborhood might consist of homes built in the 1950s and 1980s. Values between the two will differ. When was your home built?
Market Dependent Pricing
After you have collected all your data, the next step is to analyze the data based on market conditions.
In a buyer’s market…
In a buyer’s market your sales price might allow some wiggle room for negotiation, but you’ll have to lower your price to do so. To sell in this market, you might need to price your home to go down to about a 10%.
In a seller’s market…
In a seller’s market, you might want to add 10% more to the last comparable sale in your area. When there are little homes on sale and many buyers, you can ask more than the last comparable sale, and likely get the deal.
In a balanced or neutral market…
In this kind of market, you may want to set a price in relation to the last comparable sale and then adjust to fairly priced homes around your neighborhood.
Active Listings Comparisons
Go around your neighborhood and check out the other homes on sale. To see things from a buyer’s perspective, tour these homes and put yourself in their shoes. What are these homes missing? What do they have that your house doesn’t? Try to apply those details that you did not find in the other homes. Whether it’s a matter of design or lacking essentials, set a budget and spend it wisely.
The idea is to get as many offers as possible because you own the best home on the block!