Best Pricing your property before selling is an essential factor for a successful deal. It is necessary to avoid overpricing the properties for sale. It is also seen that demand wanes after 21 days or more. Thus, it is vital to ensure that you can complete a deal within this time. This can only be done by listing your property at a reasonable price. Let’s look at some of the important factors you need to consider before fixing a price.
The dilemma of pricing correctly
People tend to worry a lot about pricing their homes too low. However, properties priced below the market value often receive several offers, which drives the price up to the market value.
Compare similar listings
The first step is to find similar houses that have been listed over the last few months in your same neighborhood. The general thumb rule is to find homes that are limited within a half-mile radius of your properties for sale and then compare the pricing before fixing a price for your property.
Do not overlook the delicate and important details.
It is common to overlook finer points while computing houses. But you need to pay attention to the finer details to make sure that your properties for sale has been listed at the right price. Pay attention to physical barriers such as major streets and railroads. We also need to compare the houses and localities of similar ages. For instance, a neighbourhood may have a house built in the 1950s next to another house from the 1980s. You cannot compare these two houses due to their ages and this place.
Check out recently sold properties.
Ideally, you need to reach a minimum of three properties before making any final decision. You can find a list of recently sold properties from various sources, such as quarterly sales reports from newspapers or real estate sections of magazines. Depending on various factors there may be ups and downs on prices of the property. It should be kept in mind before confirming the deals.
You can also check out withdrawn and expired listings to understand whether those properties were listed again or not. Try to look for patterns as to why the properties could not be sold, then note down the common factors. Once this is done, try to make a list of things you can do to prevent your home from being unable to be sold.
Square foot cost comparisons
Most often buyer’s lender offers appraisals after you have received an offer. So, it is necessary to compare houses with similar square foot areas. An appraiser’s generally do not like to deviate more than 25%. So, you can consider 1800 to 2200 square feet as comparable if your properties for sale is around more or less area of 2000 square feet. Generally, larger homes have smaller square foot costs and vice versa.
Pricing dependent on the market
Once you have collected data regarding ongoing sales in and around your area, the last step is to analyze it based on market conditions and then fix a price for your home. Generally, it is advisable to set your base price at the last comparable sale in your area and then adjust it according to the market trend. Using comparative market analysis is one of the best techniques to determine the perfect price for your properties for sale. Lastly, you can also visit other active listings and analyze the mood of the potential buyers. Make a note of the things you like and dislike upon entering the house and try to use these factors to improve the reception of your own home.