For many sellers, calculating the price that you want to list a home at is such a complex and multi-faceted task that it can become overwhelming. We see many sellers who start out with a certain figure in mind and quickly find themselves dropping or bumping up that figure significantly after reconsidering a particular factor or learning a new piece of information. While pricing your home accurately at a good market value can feel like a guessing game at first, we have some pointers to get you started on the right track.
Get Another Pair of Professional Eyes
Let’s face it: the professionals in the real estate industry are the ones who know the current buyer’s and seller’s markets better than anyone else out there and can price a home accurately in no time at all. But sometimes it takes more than one set of eyes to achieve that perfect price. Averaging a couple of estimates or considering a few different price suggestions before the home gets listed can be invaluable when it comes to setting an initial sell price.
Think in Terms of Psychology
When it comes to determining market value, you have to think about what your potential buyers will see when they see your price. A sell price of $201,000 simply sounds like more than a cool $195,000, though the financial difference is not that significant. It is to your advantage to price your home at the upper end of a value range so that you attract the buyers who are searching within that price point. For example, pricing your home at $195,000 puts in within the range of the buyers who have set their minimum and maximum to $100,000 and $200,000, whereas if it were priced at $201,000 it would not reach those buyers.
Take All the Factors Into Account
Everybody knows the ‘location, location, location’ mantra but not everybody knows the key factors that play into determining a home’s sell price. Along with location, which is obviously important but is not everything, you must consider the market condition of the home as well as the property condition and any upgrades or rehabs that have been made. How does your home compare with others in the immediate area? What is its condition relative to others of its style and in the neighborhood?
Avoid Low-Bailing or Inflating Your Price
Unless you are going for a wildly speedy sale or you are willing for this house to sit on the market for what might be a long time, it is not a good idea to set your target price either too high or too low. While these numbers will differ for every home, obviously, there will be typically be a middle ground or sweet spot where you will find your target price and make your target profit.
Remember that, ultimately, the sell price of a home will be equal to the amount that a buyer is willing to pay for that home, no more and no less. Putting a home on the market at your target price may be necessary to see the kind of response you get before adjusting the price as necessary and in accordance with market fluctuations.