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Pricing Right is the key to selling your home. Studies show that pricing you home right is the most important step in selling the home fast and for top dollar. These tips will help you understand how to estimate the value of your home:
Identify what homes sold in recent months that are similar to yours. Next, take an objective look at each listing and determine what you should expect to receive for your home.
Determine the market trend. Is it going up (Seller’s market)? Is it going down (Buyer’s Market)? By understanding the real estate market trend you can price your home ahead of the curve instead of chasing the market.
Days on the Market (DOM)
If you have a limited time to sell your home, it makes sense to closely study the current average days on the market. If the average days on the market in your neighborhood is 90 days and you need to sell in 30 days, then you might need to adjust the price downward to attract more buyers faster.
Comparable Market Analysis ( CMA)
Contact an experienced local real estate agent to prepare a Comparable Market Analysis (CMA) for your home. I provide this service for free. I might need to preview the home and see all of the improvements before I can tell you the estimated house value.
Many sellers fall in to some classic pricing traps that can be easily avoided. One is assuming that Zillow or tax assessor home values are accurate. Zillow and tax authorities use computer models to come up with the home price and don’t account for area desirability, market trends or home improvements. Another trap is assuming that your home is more desirable than other homes on the market (comparable)
Overpricing discourages buyers more than any other single factor. When you overprice, you put your home in competition with homes that may be newer or larger – helping your competition sell their home! Pricing your property too high may make it necessary to drop the price below market value to compete with new and well-priced listings. Starting too high and dropping the price later misses the excitement and fails to generate strong showings. Many homes start high and end up selling below market value.
The single most important factor to consider when selling a house is pricing the house correctly.
You don’t want to overprice the house. It will lose the freshness of the home’s appeal after the first 2-3 weeks of showings. After 30-days, demand and buyer’s interest drastically fall.
On the other hand, don’t worry about pricing it too low. Homes priced below market value will receive multiple offers, which will then drive up the price to market. Pricing is all about supply and demand. It’s part art, part science, part experience. An experienced agent with local area knowledge is the best help you can hire.