Listing your home at the right price can feel like a scene out of Goldilocks and the Three Bears. Too high and you might be on the market for a while, too low and it cuts into your bottom line. So how do we pick the price that’s just right? Well, it’s more of an art than a science.
Here are the 5 primary aspects of pricing a home:
Recent sales from the area are the first place we’ll look for an idea of price. Local comparables show how much buyers are willing to spend, and what is too high. Comps will show which homes have sold and for how much and which homes are still on the market. From there we can compare features and start to get an idea of price.
Are interest rates on the rise? Is there new construction in the area that will boost home prices? These are all factors that play a part in pricing a home. Realtors have access to this type of knowledge and use it to price homes to sell.
Unfortunately, your neighbor with the 5 junk cars in the driveway can bring your home price down. On the other side of the coin, if your neighbors have immaculately groomed yards this can boost your property value. We’ll examine the area and address all the factors to get a good grasp on the price on your home.
Certain amenities of your home add more value than others, such as extra garage spaces, bathrooms and an updated kitchen. These will be taken into consideration as we work to set the price of your home. Some amenities can easily be updated or added to increase the value of your home if you aren’t happy with the proposed number.
Getting it “just right”
This is where the real art comes in. We need to get the price just right so it will get swept off the market and make your bottom line happy. We’ll examine all the data and pick a price. Overpricing leads to a long time on the market and multiple drops in price which looks bad and can get you a lower price in the long run. Under pricing means you could lose some money. Finding the just right price will hopefully lead to a bidding war and get you just what you were hoping for.
Now that you understand the basics of setting a price for a home, contact us today to get the process started.