All home sellers are eager to sell their property quickly and for the best price, but this is not quite possible if the asking price isn’t right. So, how do you price your house right? Here are ten tips:
Consider comparable sales
Comparable home sales are one of the most important factors that can help you determine the price of your home. Consider all comparable homes that were sold recently or are for sale.
You also need to consider local market sentiments and the ratio between supply and demand. If there aren’t many homes, you can perhaps increase your price a bit.
Check out your competition
Visit other for-sale comparable homes. You should at least know their location and their curb appeal. See if your home has got the same features.
Consider the appraisal value
Give extra weight to sold comparable homes. Your sale price will be evaluated by the appraiser unless you are selling your home to an all cash buyer. The officer will consider the sale price of sold comparable homes when they appraise your home. If your asking price is higher than the appraisal value, the deal is unlikely to close
No need to pay for an appraisal
In order to determine the price of your home you don’t have to get it appraised. You should rely on the judgment of your listing agent. The buyer, however, will need an appraisal to satisfy their lender.
Don’t give undue importance to square footage
Price per square foot is definitely something you need to consider; however, this shouldn’t be the only factor. It is impossible to compare 2 homes on the basis of their size alone unless of course they have the exact same features and amenities. However, price per square foot becomes important when you are trying to compare two condominiums in the exact same complex.
Don’t sell your listing
A realtor who offers an astronomical price may be trying to win your favor. They will try to reduce the asking price as soon as you sign the listing contract. Don’t fall into this dangerous trap. Don’t choose an agent just because they suggested the highest price. Instead, choose a realtor you trust.
Sellers often use irrelevant factors to inflate the asking price. For example, the price for which you bought the house is not relevant now. The price your home might have fetched a few years ago is not relevant either. However, the cost of any major renovation may be relevant.
Do not overprice
Overpricing your home is a huge mistake. It will put off buyers and if you are desperate to sell the house, you will have to reduce the asking price. If the seller reduces the price in an otherwise hot market, it will make the listing look tainted.
Do not underprice
Trying to attract buyers by deliberately underpricing your home is also risky. You might expect that it will lead to a bidding war, but in most cases, there will be no war and you will end up selling your home for your lowered asking price.
Pick an unconventional number
It is true that buyers like price tags that terminate in 99 cents. However, pricing doesn’t have to end in 99 or 00. When you use weird numbers, people might call up and ask why you picked that number. This will give you an opportunity to have a one-on-one discussion about the home.