Pricing for Selling Success
You’ve made the decision to sell your home. For most families, this is the largest financial transaction they will ever embark upon. The very first question that is always top of mind is “How much is my home worth?”. A better question would be “How much could my home sell for?”. The difference in these two questions may seem imperceptible, but they are farther apart than Gilbert and Peoria.
Let’s take a look at 5 things you should know when pricing your home for sale.
1. Know Your Value. Start online. The vast amount of information available to everyone on the planet is at your fingertips. Our website will allow you to see sold homes in your area to give you a good idea. You could also use our automated home valuation estimator or ones from Realtor.com, Zillow.com and a host of other websites dealing in real estate. The results should give you a reasonable starting point in most cases.
2. Know your market. A local realtor can provide you with the insight you just won’t get with the online valuations. A Comparable Market Analysis (CMA) is a great way to evaluate the temperature of the current real estate market.
a. The CMA provides a list of homes that are sold, under contract as well as active listings. This report focuses on homes that are similar in size, age, location and amenities. Think of the CMA as a snapshot of similar homes over a defined period of time. Factors such as price, condition and location will reveal the current market conditions. It will also provide valuable information on how long homes in your area have been on the market.
b. A visual inspection is not required to prepare a CMA; however, accuracy is sacrificed. When an in-person visit to your home is conducted, a real estate professional can, more accurately, assess the condition of your home versus the comparable homes in the area. Be prepared to provide a list of any improvements that have been done to your home and when they were completed.
c. Define insanity! Doing the same thing and expecting different results is truly the textbook definition. A closer look at those homes that have been listed and then failed to sell. You don't want to be that seller who ended up with an home that didn't sell. This information will clearly define what buyers are considering overpriced.
3. Know your competition. Evaluating the homes for sale that are similar to yours and in the same area will give you the edge. It’s entirely likely that your buyer will be visiting these homes as well. If your home is similarly priced to the competition, you should have some stand out feature(s) to make them choose you over the other homes. A Market Report can be a great tool to use to stay up to date on home sales in your neighborhood. You should be doing this even before you decide to sell.
4. Know what your buyer sees. Most online search engines will allow searching in increments of $50,000.00. If your home value estimate comes in at $352,500.00, it may be more prudent to list it at $349,900 to take advantage of buyers capping their search at $350,000.00. You can also take advantage of psychological pricing that has proven results since the 19th century. Setting a price just below a round number has a profound effect on how people perceive the price. $299,000 is much better than $300,000.
5. Know your timing. Every home sale is benefited by supply and demand. Your real estate professional should be able to provide you with information that will help you identify when is the best time to sell. Seasonal factors, mortgage interest rates, job availability, location and new home inventory should all be analyzed to give you the best possible results.
Keep these five simple steps in mind and you will be well on your way to a successful sale of your home in the shortest possible time.