Choosing the right listing price is one the most difficult choices you’ll have to make when selling your home. There are no specific rules or formulas to determine if your home price is too high or too low. However, you can still get a good idea of what your home is worth before deciding on a price.
How Much Can I Sell My House For?
There is no way to determine the market value of your home until your sale is complete. However, if your home receives a steady stream of offers throughout its listing period, rather than multiple offers once it first appears on the market, you can be reasonably sure that you have chosen the right price.
Just because your home is worth, a certain amount doesn’t mean it will sell for that price. You’ll need to take a few steps when listing your home to give yourself the best chance of a successful sale.
The 5 Best Home Pricing Strategies for Selling A Home
While finding the right price will require some trial and error, there are a few key strategies to follow to get the most money for your home.
1 – Study Past Sales and Look at Comparables
- Find out the median sale price for homes in your area. This can be especially helpful if your home is similar to others nearby.
- Find out at what prices homes similar to yours have sold for recently. Factors such as the style of home, the year it was built, square footage and the number of bathrooms can all affect the price.
- Take a look at expired or withdrawn listings to determine if a home didn’t sell because the price was too high, or if it was due to other factors such as poor marketing or staging.
2 – Take a Look at Your Local Market
Find out how much homes in your area have sold for in the past six months. This can help you can see if you are facing a buyer’s or seller’s market and price your home accordingly. In a buyer’s market, your home may take a long time to sell, so you may have to lower your asking price. On the other hand, in a seller’s market, your home can move quickly and at a higher price than expected.
3 – Be Clear in Your Pricing, Creativity Doesn’t Win You Buyers
You’ll need to consider buyer psychology when pricing your home. According to a 2014 report in the Journal of Real Estate Finance and Economics, homes priced just below a round number sold for nearly two percent higher prices than those priced with round numbers. However, you might attract fewer offers this way, as most real estate websites use round numbers to categorize homes for sale.
4 – Pricing is Ongoing, Leave Room for Adjustments & Negotiation
Another indication you have chosen the right price is if buyers continually negotiate on the price with you throughout the transaction. Even after settling on a price, a potential buyer may still want you to cover closing costs, include a warranty, make repairs or offer some other incentive. This is a good sign that you are getting the fair market value for your home.
Read: Closing on a House: Have You Covered All Your Bases?
5 – Listen to Your Real Estate Agent, He/She Is the Expert
Your agent may suggest raising the price of your home if you receive too many offers at once. On the other hand, if you aren’t receiving any offers, they may suggest lowering the price. However, they should give you time to experiment with your first price before they talk with you about lowering it.
Read: How to Do I Find the Best Real Estate Agent?
Finding the right price for your home can be a challenge, but an experienced real estate agent can show you a few key steps to take to make sure you get the best value for your property.
