Pricing your house to sell is tricky. If you get it right, you have a quick and successful sale with a substantial profit. However, if you get the price wrong, you may have difficulty selling your house at all. The good news is that it’s not entirely unfounded guesswork. There is both an art and science to pricing your home competitively. Here are some things to think about when pricing your house for sale.
💰 Avoid Over-Pricing Your Home
You may be past the “sticks and stones” portion of youth, but you’re also old enough to understand that ramifications of a bad reputation. Words can hurt you. In real estate, it’s not so much about what other people say to each other as it is about the perception that develops in their mind that may rule your house out of their list of potential homes to buy. Here’s why.
When you over-price, you may think you’re implementing a clever strategy wherein you see if anyone is willing to bite, but if not, you’re willing to knock the price down. The problem with that is that the longer the house stays on the market and the more times its price drops, the more buyers begin to ask themselves why that house won’t sell. What’s wrong with it? That question right there could deem your house unsellable. Your best course of action, then, is to pull the listing and try again later when a new batch of buyers enters the market.
📈 Understanding Real Estate Market Trends
Home values are not locked in. They’re not cemented, set in stone, and unchanging. On the contrary, home values can fluctuate drastically from one day to the next, making it difficult to determine the best time to sell or the best asking price. What you’ll earn for your house in a seller’s market is far different than what you’ll garner in a buyer’s market.
A seller’s market means there are few houses for sale and many buyers hungry to purchase. This creates fierce competition amongst buyers which can drive up the price of real estate.
On the contrary, a buyer’s market means there are few buyers and plenty of houses from which to choose. Sellers who are motivated to move might lower their prices, even more, to make their house more attractive amidst the competition.
Current market trends will determine the market value your home has today. But don’t worry. Your real estate agent can help you understand the strategy to pricing your house to sell.
📊 Benefits of a Comprehensive Market Analysis
Your agent will supply you with a comprehensive market analysis, a CMA, which is a report detailing recent real estate transactions in your area. Within this report, you’ll be able to determine how many houses have recently sold in your neighborhood, how much they sold for, and how long it took them to sell. This can be incredibly insightful in determining the best course of action for listing your house for sale.
If your neighbor’s house is the same floorplan as yours, in equal condition to yours, and priced $10,000 cheaper than yours, which do you imagine the buyer might purchase? Your asking price should be in the same ballpark as the asking price of neighboring houses that are similar to yours.
🏘️ Know the Neighborhood
Don’t be bashful – get out there and scout the neighborhood to find out what buyers have access to other than the house you’re about to list. Identify the competition and know what you’re up against so you can effectively price your house from an educated standpoint.
📝Listing Appraisal as a Tool
Another tool you have access to is a listing appraisal. A listing appraisal may cost you a couple of hundred dollars up-front, but you’ll receive an unbiased, third-party professional’s opinion based on industry experience and scientific measures.
🏡 Staging Tips
Stage your house efficiently so that the look and feel of the property substantiate you’re asking price.
Keep sentimental value out of the equation. You’re not selling your experiences and memories within the house, but instead, are engaging in a business transaction to sell a structure.
Pricing your home competitively and efficiently is a crucial element in listing your house for sale. Talk with your real estate agent about the best strategies for pricing your house. Review the comprehensive market analysis to understand current market trends.
Your real estate agent is the best source of information about the local community and real estate topics. Give The Weinland Group a call today at 210-253-3133 to learn more about local areas, discuss selling a house, or tour available homes for sale.