Pricing Your Home
The single most important factor when listing your home is the asking price. Here are a few key tips when pricing:
**DO NOT USE ZILLOW TO PRICE YOUR HOME
I cannot stress enough the panicked calls we receive when clients find their homes value is less than it should be on Zillow or the elation of the client that finds that Zillow has priced their home 30% higher than all of their neighbors. Zillow could possibly be the single worst source for pricing your home. Similar to an appraiser, a qualified agent can provide you with the most recent like kind home sales in your area or subdivision which will determine your homes value.
Abandon your personal point of view
How much will a ready, willing, and able buyer pay for your home? It is not important to a buyer how much you paid for the home, how much money you need for the down payment on your next home, or how much it will take to get you out of debt.. The only concern a buyer has is whether or not your home is at a fair price for the neighborhood and features.
Consider market conditions
Are home prices in your area moving upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring or in the dead of winter? Are interest rates attractive? Is the economy hot or cold? The answers to these questions should be considered when pricing your home.
Desirability
Is there: Steep driveway? Small yard? Sloping yard backing to a busy street? Small master bedroom? No garage? Undesirable location? Small square footage? These are all examples of factors to take into consideration when pricing. If your home has undesirable features that cannot be changed, the only thing that can be changed is the pricing. When selling your home, you always have to consider the competition. If someone can get a 3 bedroom ranch that backs to common ground for the same price as a 3 bedroom ranch that backs to a busy street, they will always pick the one that is more appealing. In order to sell your home, it has to be the most appealing home in your price range.
Find a minimum of 3 comparable properties
Your Realtor should provide you with a comparative market analysis (CMA), which shows the prices of comparable homes. Comparables consist of close or same square feet, close or same style, and close or same number of bedrooms and baths. Pricing your home correctly based on comparables will provide you with the highest possible price for your home. Your agent’s main goal will be to price your home so that you walk away with the highest selling price possible without overpricing and eventually getting less than you should.
What if I price my property too high?
Overpricing your home can be disastrous. The first two weeks a home is on the market are generally the most active as well as the most promising for getting top dollar. Studies prove that if you are priced too high, your home will stay on the market no matter how much exposure and advertising it gets. Agents can track how long a property has been on the market and as the days on market accumulate the perceived value of your home declines. The most common pricing mistake made is overpricing.