Thinking through the price strategy is very important when preparing to sell a home. It’s crucial to pick the right price at which to sell a home depending on its worth. If a person sets the price of their home at an extremely lower price hoping to sell it fast, they risk starting a bidding war. And, if they price it too high hoping to drop the price if they don’t get offers, people might lose interest in it.
Several factors can also influence the time to sell and the price to ask for a home. The National Association of Realtors notes that summer is the time when home prices experience larger gains. That’s because there is pleasant weather at this time. As such, it’s easy to create a perfect atmosphere for selling or buying a home. But, deciding the price for a home can still be a challenge regardless of the time when a person decides to sell. Here are useful tips that can be used to price a home for sale.
Dealing with Emotions First
When a person has lived in a home for many years, they have probably developed an emotional connection to it. This connection can make deciding on the price to ask for their home difficult. The precious memories a person holds about their home can make thinking soberly difficult. Thus, they might not view the value of their home realistically due to their emotional attachment to it. To deal with their emotions, therefore, they should seek advice from an objective person that has an open mind. This can be a real estate agent or a person that knows how to value properties.
Get the Home in Tip-Top Condition
Home repairs and cleaning are not necessary just when virtual staging a home. When selling a home, it’s crucial to fix damages before determining its value. So, if the goal is to ensure that the home fetches the highest price, the seller should ensure that it is in its tip-top condition.
Here are some of the things to do before listing to enhance the condition and value of a home:
- Handling all necessary repairs
- Making the home sparkling clean
- Upgrading the carpets, paint, and fixtures
- Addressing the objections potential buyers might have to the home
Check Competing Listings
The seller should find out more about competing properties. This entails viewing the homes for sale within their market and similar price bracket. It’s wise to do this some weeks before a seller puts their home for sale in the market.
Comparative Analysis of the Market
If a homeowner intends to sell through a real estate agent, they should ask them for comparative market analysis. This analysis comprises of the recently sold homes in their area within the price range of the property they want to sell. These are the comps or comparables of a home.
Talk to a Real Estate Agent
The seller should ask their agent about the price they think is the best for the home. If they push for a price lower than what the seller considers justified, they should question them. What’s more, they should find out why the agent thinks that is the best price for their home. An agent can set a lower price for a home when they have an incentive and want to sell it fast. For instance, they may want to sell a home faster, get a commission, and move on to sell another house.
But, a professional and reliable agent balances the interest of the client and their needs. Such agents will explain the strategies that work best for their clients. Therefore, a homeowner should choose a trustworthy agent and work with them to set the best price for their home.
Use Comps
It’s good to work with a reliable agent. But even then, a home seller should use online tools to learn everything they can about the competition. This will give them market expertise and they can even get comps that their real estate agent may have missed. It’s particularly important to pay keen attention to the differences in similar, competing homes and theirs.
Work with an Appraiser
A real estate appraisal provides an opinion of the market value for a real estate property. Hiring a professional appraiser provides more precision than can’t be gotten from the market analysis of a real estate agent. An appraiser is a professional whose specialty is determining the market value of properties. A home seller should find an experienced appraiser in their area and work closely with them.
Over-pricing a home can kill a deal faster than anything else. Therefore, emotional attachment to a home shouldn’t be allowed to affect its listing price. Also, the seller should find out more about the prices of similar, competing homes. What’s more, they should work with experts like an objective and reliable real estate agent or an appraiser to price their home for sale correctly.
