When you sell your home, you may feel unsure about how much you should list your home. Selecting the right price for your house is difficult, so it is best to take the advice of your real estate agent; they know where your house should sit in the current market. If you choose a price that is too high, usually against the advice of an agent, you may end up having your house sit unsold for a long time and sell it for a much lower price.
Comparative Market Analysis
Your real estate agent should provide you with a comparative market analysis, which shows recent home sales in your area. It compares the home details, how long they were on the market for, and the sale price. This will give you a better picture of how much you might be able to get for your home. Looking at the original asking price of homes in the area versus the selling price will also give you a better insight into the market.
It is important to keep in mind that even though you may feel your home is worth more, it does not mean that you should price it with your heart. Pricing is far above what your agent suggests will keep you from selling it quickly. Also, if your buyer is getting a mortgage loan, they will not be approved for a loan above the appraised value.
Some of the things the properties in your analysis include are:
- About the same age as yours
- Listed within the last three months
- Be within 1/2 mile from your house
- Have similar square footage to yours, usually within 10 percent of yours
- Similar features, like the number of bedrooms
Make Your Price Stand Out
People will often group their prices in with others, but that can make them all be bunched together and not stand out. If there are five homes in your area that are listed at $150,000 and another three listed at $165,000, if you make your price $160,000 it may stand out, since it is the only one in the middle of the price ranges.
While you are trying to make your price stand out, you should try to avoid random, obscure pricing. Having your house listed at $123,456 looks odd and you may lose out on potential buyers as a result.
You can select a list price that is just under a century number to make it stand out and look more attractive. This is the practice of making something $9.99 instead of $10. So, if you list your home at $149,999 instead of $150,000 it may be more enticing to potential buyers.
Sometimes, no matter how much research you do on pricing, your price can be too high. It is common for sellers to lower their prices at least once. Be flexible with the price but try to avoid making small price changes over time. It is better for you to just make one big price change.
If you are in a buyer’s market, you are even more likely to have to change your listing price. Buyer’s markets tend to drive prices down, so selecting a lower price is a good strategy to sell. This is because, in a buyer’s market, there are tons of homes for sale, so having a lower price for your home can help you attract buyers.