Pricing Your Home
Getting ready to sell? The more you know about conditions in your local market, the better your chances of getting the best possible price for your home. A seller’s biggest mistake is to overprice. To increase activity and interest in your home it’s important to price your home in line with sold homes in the area.
Housing Markets Are Local
Demand for homes can vary by market and even neighborhood. What’s demand like in your area? A comparative market analysis is useful, your listing agent can provide a list of homes similar to yours to get an idea of what homes a really selling for.
Examine sold comps, withdrawn and expired listings, pending sales, and active listings to get an excellent idea of your market. Be realistic if your market is hot, cold, or neutral.
Seller’s, Buyers, and Balanced Market
In a seller’s market, where there are a lot of buyers vying for little inventory, you might want to add 10% more to the last comparable sale. When there is little inventory and many buyers, you can ask more.
In a buyer’s market, when there are a lot of homes on the market and very few buyers competing for that inventory, you may need to price your home more competitively below the last comparable and understand concessions may need to be met to sell the home.
In a balanced or neutral market, you may want to initially set your price at the last comparable sale and then adjust for the market trend.
Who’s Buying and Selling?
And what competition do you have? Get to know your market and the type of people that are currently buying homes. Are you competing against a lot of other listings? Are more new construction or investment homes being sold? It’s important to ask yourself these questions.
Seek a Professional
Specialized listing agents know their market, they see homes selling daily and new homes arriving on the market. Great listing agents know which homes will stay on the market and what price will motivate buyers.
