Pricing your home is the heavy lifting that you need to do when you make up your mind to sell it.
A home’s price is determined by several relatable factors that are unique and different in some way.
It could be that you are considering moving to another area or that you simply want to live in an upgraded house, but selling the existing house can be just as challenging as finding a new one.
There would have been many questions on your mind. This applies especially to the price of your home, such as whether to price according to market value or above or below it.
Figuring out the sale value of your property can be complex and tricky.
It could be difficult to decide what features of your home can help you get a higher value and what cannot. Additionally, how to do pricing concerning the market value of the house can also be tough.
However, if done right you are not far from cracking a good pricing deal for your home while selling.
So, let’s take a look at some expert suggestions and guidelines below on how you can determine an appropriate price for your home for sale.
How To Price Your Home Appropriately?
Use Online Home Value Estimator:
The internet is loaded with tools to estimate your home value for sale. Using an online home value estimator can be a good start for deciding the price of your home.
You need to enter certain details and answer a few questions. As a result of which, the online home value estimator shall provide you with an estimated range of valuation for your home.
It usually finds the available data such as the current value of your home by comparing your property and its features with some other similar listed properties that have a recent sales record.
Online home value estimators shall only provide you with a reasonable price. They do not give the exact data required to do proper pricing for your home. However, it can still help you to get a kickstart.
Connect With a Local Real Estate Agent:
An online home value estimator can just provide you with an approximate idea about the pricing of your home as these estimators use limited data.
Therefore, the next step that you need to take is to approach a well-experienced local real estate agent.
The agent may consider the factors that an online home value estimator may not, such as the recent advancements, the locality of your property, and local buyer opinions and beliefs in the region.
Not only this but the agent may also tend to have inner information about the ongoing sales of homes in your area. The agent can provide you with the best piece of advice on valuing your home at the fairest price.
Conduct Comparative Market Analysis (CMA):
As the housing market conditions change dynamically with time, it is important to stay updated and switch the recent updates and trends for pricing your home rightly.
Conducting a comparative market analysis (CMA) is one of the best ways to price your home for sale appropriately.
You could ask your real estate agent to do this analysis. He/she should review and compare the information about the most recently sold homes in your local market. These are called ‘comparables’ or ‘comps’.
In other words, comparables are homes that are similar to yours and are recently sold. They could be similar in terms of amenities, structure and size, location, and so on.
These comps can be a good consideration when pricing your home for sale.
Know Your Housing Market:
It is crucially important to understand the housing market you are in. The pricing strategy that you shall adopt will be greatly influenced by this.
Usually, there are three types of markets based on which you can decide the pricing of your home:
Seller’s Market:
In this market, the number of buyers is more than the number of homes for sale.
As a result, you can price your home slightly higher than the market value for your home, as the buyers here are contending for fewer homes.
Buyer’s Market:
In such a market, the number of homes to be sold is more than the number of buyers.
Hence, you are required to price your home slightly less than the market value for the house to attract buyers.
Neutral Market:
This type of market has a balance between the number of homes to be sold and the number of buyers for the same.
You need to make sure that you analyze your comparables and try to keep prices accordingly and compete to attract buyers.
Considerations When Setting Your Home’s Price:
While strategizing about the price of your home, you may fall for some common mistakes. That is why the below considerations should be viewed to specify the right price.
- Set aside your emotions to determine a realistic price for your home.
- Don’t overemphasize home improvements, as not all renovations and upgrades have higher ROI.
- Try to understand the buyer’s perspective while setting the price.
- Adjust the price or strategy as and when necessary.
To Sum Up
By applying the above guidelines for pricing your home, you are less likely to disappoint your potential buyers by quoting an overvalued price. You can be assured that you are not underselling your home.
Make sure that you are conducting a profound comparative market analysis and approaching a trusted real estate agent. The more data you collect, the higher the chances are that you will quote the right price for your home.
For more proficient recommendations, get in touch today!