how to price your home

How to Price Your Home: 7 Tips from Real Estate Experts

It’s never easy to let go of a home even if you have an exciting reason to move. But, saying goodbye to your old house is a lot easier when you’re able to sell it for a great price!

Getting such a deal doesn’t happen by chance; it requires careful preparations on your end, which begin the moment you decide to sell. You need to learn how to price your home well and what goes into a strong real estate marketing campaign before you put your house on the market.

Here are some tips to help you figure it all out.

1. Research Local Listings and Sale Prices

The best way to understand what a good price is for your home is to research comparable listings in the local area. See what homes that are similar in size and structure have sold for, and consider how much competition there is in the area.

Are there a handful of 3-bedroom, 2-bathroom houses on the market? Or, are you in a unique position to sell a 3-bedroom, 3-bathroom house in a region where the availability is mostly 2/2s or even 2/1s?

Comparisons give you guidance during the pricing process. They help you establish a ballpark number of what your home may be able to sell for, and more importantly, they can identify unique leverage opportunities you may not have thought of.

2. Pay Attention to Price Reductions

The thing about comparing the sale prices of similar homes in the area is that you have to check whether or not there have been a significant amount of price reductions. It could be possible that these homes were valued at the prices they began at. But due to market demands and other economic conditions, they may have been pressured to sell for a lower price.

This is a shift you need to be prepared for as best as possible. There’s never a guarantee as to whether or not you’ll have to lower your asking price. However, recent trends in your local market are good indicators of what you can expect.

Keep in mind that “similar homes” is key. You can’t expect your house to sell for a similar price of a 3/3 if you only have a 2/1 (bedrooms/bathrooms). Not to mention, there are a lot of things that go into pricing beyond the number of beds and baths you have to offer.

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Consider the total square footage of your home, the yard size and curb appeal, and even the appliances and the age of the house, too. All of these things add up when setting an asking price – or cause it to drop.

3. Aim for the Sweet Spot

Even if similar properties are mostly selling high, you have to consider the ones that have gone for lower prices, too. Your best bet is to find the sweet spot between what the highest selling price has been in the past few months and what the lowest number was as well.

This reduces the chances of encountering any surprises during the selling process. More so, it makes your listing more appealing to a larger group of buyers in the area.

4. Consider Pricing from the Buyer’s Perspective

Speaking of local buyers, think about pricing from their shoes for a second.

If you were a buyer in the real estate market, what would your price range be? Most people set a range with a $5,000-$10,000 gap. So, if you ideally wanted to buy a home for $223,000, your price range would be $220,000-$225,000.

You want to aim for a number that appeals to more than one price range. If you think your home is worth $230,000 for example, figure out a way to appeal to buyers whose range is just above and just below this figure.

Going up or down a few thousand dollars improves your chances of succeeding with a quick(ish) sale for a good price. It can be even more beneficial if you’re trying to figure out the process of selling your house for cash.

5. Invest in a Pre-Appraisal and Pre-Inspection

If you’re really at a loss for figuring out how to price your home, call the professionals. Actually, an appraiser and an inspector are good to hire even if you think you know what you’re doing.

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Such services help you fill in all the gaps when pricing your home. The last thing you want is to enter the market at a certain asking price only to realize you have to significantly bump it down due to a plumbing issue or lack of curb appeal.

These may seem like minor fixes as a homeowner, but they make a big difference to buyers. Also, having professional figures on-hand can help you stand your ground when buyers try to lower the price in negotiations.

6. Find the Ideal Realtor for You

Just as it’s good to invest in an appraiser and inspector, you should also hire a real estate agent or realtor (yes, these are different!). Such a real estate professional understands the market much better than you do. They have a deep working knowledge of what buyers want and how sellers are succeeding.

This means they’re extremely prepared to get the price you’re looking for. Or, they’ll be willing to explain to you why the “ideal” number you have in mind isn’t very realistic.

7. Be Willing to Adjust

Last but not least, be willing to adjust.

You may not decide on the “perfect” price right off the bat. There are ebbs and flows that happen in the market that may require you to lower your asking price. But, there could also be opportunities to raise the price a bit!

You never know what the market behaviors may be next month or even next week. Keep an eye on trends even after you’ve set your price and see if there’s a chance to change things up a bit for the better.

How to Price Your Home as Accurately as Possible

The more you take your time when pricing your home, the better off you’ll be when entering the market. You don’t want to take forever of course, but it’s good to understand all sides of price setting and to consult the professionals, too.

For more tips to help you decide how to price your home and figure out the real estate market in general, click here.