Correctly pricing your house for listing is one of the most significant factors in whether or not you experience a successful sale. You may fully understand the role pricing plays in real estate. If you price too low, then you naturally lose money. If you price too high, then you’ve learned an expensive lesson because the house stays on the market longer, goes through reductions in value, and may earn a nasty reputation as being unsellable. The trick, then, is to set a price that’s in the sweet spot – compelling enough to generate substantial offers. Here are some things to ponder when pricing your home for sale.
Whether you’ve been the head honcho of your house for six months, six years, or six decades, you’ve made a memory or two. In fact, if you’re like most sellers, you’ve got quite the collection of nostalgia invested into the fabric of that house. You’ve overcome obstacles and reached milestones and celebrated events that were truly once-in-a-lifetime moments. But raising the price on your home for sale does not bring back those memories. You cannot expect buyers to pay higher prices for the sentimental value you place on the property. Your experiences in the house don’t make the house more valuable, but those memories do add immeasurable worth to your life.
The Moody Market
You may never get out of your house what you paid. Then again, you could turn quite the profit if a tempting deal comes along at the perfect time. But what negates the “right time?” And how do you know if selling now will bring a loss or a gain?
The real estate market shifts. It moves and bends and loops over, around, and through itself. Contributing factors include the number of available houses for sale in a given area, political climate, economic status, population, and buyer trends. Essentially, a house in any market is only worth what a buyer is willing to pay.
Talk with your real estate agent about current market trends.
Free Home Valuation Calculators Online
Yes, sure, do it. It’s free; why not? But be careful. Those free online home valuation calculators may be a great starting point for getting a rough idea of what your property may worth, but they’re far from being accurate.
Your Agent’s Expertise
Your agent will help you discover the best asking price for your home. Remember that your asking price is not necessarily going to match the selling price, but it is a good starting point. Your agent’s advice is based on their education, experience, and on a particular set of data that includes a comprehensive market report. A comprehensive market report details movement in real estate in your area, such as homes in your neighborhood that are similar to yours that have recently sold. The report also reveals that home’s asking price vs. sales price, how many times the price was reduced, and how long the house sat on the market before selling.
The Power of Pre-Appraisal
A listing appraisal, also known as a pre-appraisal, can also help you discover potential ways to price your house for sale. The appraiser uses data similar to that of your agent’s comprehensive market analysis, coupled with an in-person inspection, to determine fair market value. During the inspection, the appraiser is looking for how well the materials have aged, the condition of the home, landscaping, upgrades, etc.
The appraisal can also find ways to help you increase the value of your home by detailing minor updates, repairs, upgrades, or quick-fix items that could add more value to your house.
Scout it Out
When you’ve ruled out sentimental value and personal investment, when you’ve consulted with your representative and called in the expertise of the pros, your next step is to get out there and see for yourself what is available to buyers in your area. Tour the houses for sale and ask yourself how your house stacks up against the competition.
Pricing Your Home – It’s Time!
Check out the free resources like home valuation calculators online as a quick-and-easy starting point. Consult your real estate agent for his or her professional opinion. If needed, consider ordering a listing appraisal. Scout out the neighborhood to see what’s available. Detach emotionally from the process while keeping a firm grip on the business end.
Your real estate agent is the best source of information about the local community and real estate topics. Give PEG Ramsey a call today at 818-809-3658 to learn more about local areas, discuss selling a house, or tour available homes for sale.