If you’re trying to sell your home, you might have run into a certain roadblock many sellers face:
Setting the right price.
Unfortunately, most sellers who run into this roadblock never find out what they were doing wrong in the first place.
The truth is, pricing is not a simple process. That’s why sellers often make critical errors in pricing that cost them both money and valuable time in the long run.
Take it from me. I know the strategies you should follow to sell your home faster than you might believe possible. Stick around, and by the end of this post, you’ll know the right way to price your home!
Seriously. In real estate, first impressions are everything.
Many sellers wrongly believe that their strategy should be to set an unreasonably high asking price at the beginning of the sale. They think, “Maybe someone will bite.”
They won’t. Inevitably, you’ll have to lower the price and then you’ll see that you accomplished nothing but a waste of time.
Think about the people who saw your listing, but decided against it immediately because of your asking price. You may not be able to get those same buyers’ attention again after you change the price because they may have already decided on another purchase.
But I’m not telling you to undercut your own estimation of your home’s worth too sharply. You shouldn’t leave money on the table by pricing too low.
Instead, do your research and find that perfect sweet spot.
Use an Online Calculator
A solid tool for performing that research is an online price calculator.
Price calculators allow you to input information about your house and connect that data to your actual address. They then search their own databases to determine a proper asking price. They’re a good place to start because of how simple they are to use – and they’re free.
But, because online estimates can vary, you should get at least five prices and take the average from them. Here are some sites with free price calculators:
Remember, these calculators collect mostly surface data about properties, like square footage, how many bedrooms and bathrooms you have, and comparable sales. They won’t be able to understand the subtle details about your home and its location that might alter the price.
So, don’t take the average price you generate from these calculators as law. Think of it more as a ballpark estimate, and proceed from there.
Keep Your Eye On The Market
Take a look at how the housing market has recently performed nationally. Check out graphs of median home prices, and absolutely look at your comparables.
Closely examine the trend from a year ago, six months ago, three months ago, and now. If that line points up, you’re in a seller’s market. You could feel comfortable adding an additional 10 percent onto the price of your home. But, if you’re in a buyer’s market, you’d be wise to subtract that 10 percent.
Another smart strategy is to keep your eyes peeled for foreclosures nearby. If more than 25 percent of the sales in your area are bank sales, you’ll probably have to reduce your price considerably if you want to compete.
Think Like a Buyer
Make sure your price reflects the way your home compares to others in the area. Some of them might have more, some less. You need to be as realistic as possible if you want to know how to price your home to sell.
You should also think about the way your home will come up in local real estate databases. Think about it this way:
If your home should sell for $400K, potential buyers might search for “homes under $400K.” But if you make the mistake of pricing your home at $410K, it won’t show up in the search at all.
So, when figuring out how to price your home to sell, always try to anticipate the expectations of buyers in your area.
But if you can’t quite get your head wrapped around the way a buyer might think about your property, talk to your agent about current buyer trends. Ask what it is that drives buyers the most in your area’s housing market.
Have a Plan B
One problem many sellers run into is a lack of a contingency plan. Their expectations for their property’s appeal are much too high, so they ask for an unreasonable price from which they refuse to waver.
Their agent sits them down to explain to them that they have to be more flexible, but they won’t hear it.
Don’t be this kind of seller. Instead, understand that you may have to change your mind at some point in the near future if you want your home to sell as quickly as possible.
There’s always a chance that your home will sit on the market and stagnate if you won’t move from your initial asking price. So, figure out how low you’re willing to go from the beginning of the home-selling process – it’ll save you time and the frustration of unpleasant surprises.
Ask a Real Estate Agent How to Price Your Home to Sell
It’s a real estate agent’s job to know how to price your home to sell quickly. If you reach out to your agent, they’ll be able to help you determine the correct asking price in no time.
Also, remember that setting the price on your home is an ongoing process. You can’t just set the price and forget – so many unanticipated factors can come into play that might demand a price change.
Your best bet is to listen carefully to the strategy devised by your real estate agent. If they’re experienced, they’ll know what works and what doesn’t – so always be open to discussion, and leave your mind free to change.
As long as you’re flexible enough to react quickly to any change in market conditions that could occur, you’ll be able to sell your home quickly at the best possible price point.
So, if you need the help of a local Killen and Austin area real estate expert, you’ve come to the right place. Contact me today and we can discuss the pricing strategies you should follow to sell your house as quickly as possible!