SETTING THE PRICE
Setting the right price for your home is the most important decision you will make. Learn how to study market trends and set the optimal price for your home.
Setting the Right Price for Your Home
A key part of your marketing plan is setting the list price. Quite simply, if a home is priced too low, you miss out on potential profit. If a home is priced too high, qualified buyers will look elsewhere.
To determine the best asking price, review the prices of recently sold, comparable homes in the area; evaluate the competition, and study marketplace trends. Our Sales Professionals have ready access to this information, and can provide the big picture to help you determine the right asking price.
It is also helpful to discuss with your agent other terms and conditions that can be included in the sale of the home to make it more attractive to potential buyers. For example, an owner can offer to pay points or complete a major repair – such as a new roof – to make the deal more appealing to a qualified buyer. A home warranty is another useful marketing tool, providing protection if an appliance or other covered item fails after closing. Home warranties are a relatively inexpensive way for a seller to add value to a property.
Other factors to consider:
- Real estate is local. Your Agent can explain current market factors in your community, including what’s selling, what isn’t selling, and why. This information is critical to setting an optimal price and terms.
- If your house is located in a desirable area you will be able to get a higher price than you can for the same house in a less desirable area.
- If a house has amenities that are currently popular in the marketplace, it will bring a higher price. Your Agent can help identify top trends.
- A house that has been better maintained and “shows” better will always sell for more than one that has had deferred (neglected) maintenance and needs work.
- Buyers expect everything to work. It’s an important trust factor, and worth the time and expense to make basic repairs.
- Markets differ by location and time. When interest rates are low and the local job base is growing, it’s great to be a seller. But when times are slack and mortgage rates are rising, homes also sell. The trick is to be realistic, to get as much as market conditions will allow.
TIP: A formal written appraisal can be useful if your property is unique, or there hasn’t been much activity in your area recently. It’s also helpful when co-owners disagree about price, or there is any other circumstance that makes it difficult to put a market value on your home.