Setting up the right price for selling your home is always a question that confuses people selling their homes. You don’t want to go beyond the market price as it won’t bring in any customers. Similarly, going below the market price isn’t a rational decision to count on. Besides, the buyers might feel skeptical of the lower pricing because real estates are not usually priced that way.
All this leaves you with the valid question, “how much is my house worth”?
We’ll try to discuss the factors that can help you determine the right price for your property.
Start with a home value estimator:
There are multiple tools available online that provide you with rough estimates of the actual value that you should be expecting for your property.These tools are based on the data collected from the sales of the other similar houses in the same area. Some forums might require you to provide you with information related to the conditions of your place to get the exact value.
Review the prices of the other homes sold:
Another essential thing to consider here is to compare the process of the other homes sold or auctioned in the area. Your real estate agent can help you with this information. Comparative Market Analysis (CMA) list is usually available with the real estate agencies. So, you can get this information with great ease.
Analyze the mistakes of the other sellers:
You can also learn from the mistakes of the other sellers while pricing your house. The listing price of the recently sold homes and their actual sales price can offer you great insights into what went wrong with the pricing.
If there is a huge difference in the selling price and listing price, you can easily conclude that the property’s seller was not fully aware of the market scenario. If the listing price was higher than the amount at which the house was sold, the buyer overestimated the market. Similarly, if the listing price is lower, the buyer mistakenly quoted lesser when he could have quoted higher. By identifying this difference, you can find a reasonable offer price for your property.
Do not get into the competition for pricing your home:
It applies to situations when there are multiple properties for sale in your neighborhood. People are usually inclined to keep the prices in the same range, ultimately resulting in a price war. The sellers lower their prices to get more visibility and better affordability in the eyes of the buyers. So, you shouldn’t get into all these problems and price your property a bit higher or lower than the other homes selling in your neighborhood.
See things from the buyer’s perspective:
One of the best ways to price a house effectively is to evaluate it from the buyer’s perspective. What if you were to buy his home? Would you have paid this price? If yes, you are good with this listing price, but if the current price doesn’t work for you, you must change the price and set it to a more realistic target.
Do not get stuck on the listing price:
No matter how nicely you have evaluated the market, you must always be ready to lower the price. If you are selling your property as a private party, you’ll have to negotiate with the buyers on the price element. If you remain stuck on the price, you might lose a potential buyer for a few hundred dollars.
You must keep it into account while pricing your home and considering the discounts in the listing prices.
Get a second opinion:
Even after a careful evaluation of all the essential factors, you should get a second opinion from an individual or agency in the field. You might have missed some aspects or gone too aggressive while interpreting the market forces. So, a second opinion in this regard can offer you a room to adjust your asking price and be as realistic as possible.
By keeping all these tips under consideration, we are sure your confusion about determining of right selling price has been resolved. You don’t have to decide on this pricing factor alone; your real estate agent will help you at every step. So, you can rely on your agency to come up with the final asking price.