If you’re looking for a new place to live or are relocating to another city, you’ll probably need to sell your current home first. There are a number of steps to getting your house on the market and into the hands of a buyer, and price is one of the most important elements of the sale.
In order to price your home to sell while still providing you with a profit, it is important to conduct some research.
The most important piece of information to help determine your price is what comparable properties are selling for. You will want to look at a number of similar homes to see what the original list price was and at what price it sold.
After that, you’ll want to take a look at your neighborhood sales. While not all the houses will be the same size or have the same amenities, location to desirable shopping, good schools and parks can add to your potential price. Foreclosures or other negative neighborhood aspects could drive your price much lower. Most homeowners don’t have the time or the right research tools to obtain this vital, in-depth research. That’s why you’ll want to hire a professional, licensed realtor and have them prepare a Comparative Market Analysis (“comps”) for you.
Even when you have the research the big question remains, “How much should we list our home for to get it sold?”
We see this a lot: many home sellers feel that they should start with a higher price in order to leave room for negotiations. This strategy usually backfires, especially in today’s market. If you price your home above the current market, it will remain unsold for some time. And you won’t have ANY offers to negotiate down from. During this time, you’ll be paying your mortgage, utilities, property taxes, and maintenance costs. These costs usually add up to more than the money you might make by listing at a higher price.
In a seller’s market, homes that are priced aggressively can yield multiple buyers and multiple offers. If you can get multiple offers, your home can often sell for more than what you ask for the home. When buyers compete against each other, you win.
Properly researching the market and pricing your home right the first time is complicated. You’ll want to get us involved early in the process. Together, we’ll come up with a great pricing strategy to get you as much money for your home and get it sold in the time frame you need.