Most tangible things when kept nice tend to hold value, and when it comes to selling your home, some people tend to think subjectively rather than objectively. While buyers want value, they are more concerned about the price.
After all, to most people that is the most attractive feature of a house. The right price can close the distance between selling the house in a week and selling the house in three months or more. On the other hand, the wrong price means that your house will be sitting on the market for an indefinite period of time.
Work With Your Real Estate Agent
An agent brings the prefect mix of knowledge about the local market and industry expertise to the table. In order for the agent to come up with the right price, you need to make sure they have all the facts.
This is how the pricing process works:
- You list down your needs
- The agent takes into account the research you have done
- Sit down with the agent and come up with a realistic asking price that satisfies you both
- Check online for the market value of houses sitting “for sale” on your block
- Compare prices
Following are a few tips that you can use to set the right asking price for your house:
Following is some of the research you can do before your first meeting with the Realtor. This way, you and your Realtor become partners in the process. I always say that when Realtors and Sellers cooperate, together we are able to achieve the best results.
Get Information about the Comps
Comps are houses that share the same history as your home. They are similar in structure and have the same layout. Finding out about the comps will help you set the right price for your home. A real estate agent uses the following factors when assessing comps:
- Number of rooms, bathrooms and bedrooms
- Square footage
The asking price can be raised if your house has a special feature that holds value on the market.
Check Out the Competition
Are there other houses being sold in the market?
What features do they have?
Do you see many people going in and out of the house?
Is the house on sale by the owner or is a real estate agent handling it?
These questions will help you understand what your competition is doing. It will help the real estate agent prepare an offer that proposes more incentives than your competition.
Check Out the Market
Are you operating in a seller’s market or a buyer’s market? The former gives you an advantage as buyers when the inventory is oversaturated, whereas the latter is the opposite. In a seller’s market, you are in demand and raising the asking price, within reason, is usually not a problem.
Don’t Get Emotional
We understand, thousands of memories have been created in your home but that does not mean you reject offers just because you don’t feel it’s an adequate one.
Be Savvy When Setting the Asking Price
Finally, when you have gathered all the information, you can now set the asking price. However, there’s a trick to it?
For example: Say, you priced your house at $400,000. If the buyers out there are looking for a house below that price, your house won’t come on their search results. This is where you need to use a different pricing strategy called “$99”. Instead of pricing the house in round figures, go for psychological pricing. Set the asking price at $399,999.
Your work does not end here. The real estate market changes constantly, which means that even after you have listed your house, the price should be tweaked every now and then to attract the buyers. Working with an experienced agent is the best way to combat all the situations that may arise in a fierce real estate market.