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Of all the essential things that will need to be done when you embark on the process of selling your home, knowing where you stand in terms of price is quite possibly the most important. Too many homeowners make the mistake of inaccurately pricing their home, mainly because they lack a true understanding of the market or what should be the ideal scenario in their own case. Keeping these tips in mind as you decide what the selling price of your home should be will undoubtedly benefit you in the long run.
1 . Use online tools and calculators to help assist you in determining the fair market value of your home and others in the vicinity. By fully researching all the variables that go into the vale of a property, the edge gained will be invaluable. Examples of useful sites arewww.trulia.com, www.realtor.com, www.yahoorealestate.com and www.zillow.com.
2. Conduct a Competitive Market Analysis, whether by using the services of your real estate agent or relying on an appraiser. Gaining independent appraisals or having a CMA done on your home before putting a property on the market are key success-leading factors in pricing your home accurately.
3. Think like a buyer. By adopting the mindset of a buyer, you will leverage the things in your home that would matter most to potential buyers. An important part of this is to remove the emotion out of the sale. Rather than focus on things that may have emotional importance you to, such as the granite countertops in your master bathroom, for example, keeping your eye on the ball for the major things that buyers would appreciate like a 3-car garage or a large yard, will help you determine a more appropriate price range.
4. Look beyond the comparable features. Rather than hone in on things that are standard, consider the unique aspects of your home, whether good or bad – and price accordingly. Is the property located near a busy intersection? Are there power lines nearby? Is the neighborhood school system a good one? Looking beyond comparable items will allow you to dig deeper and evaluate the price based on truly unique items.
5. Know your local market. When you study and are aware of the statistics not only in your neighborhood but the local area in terms of the supply of homes percentages, number of foreclosures and short sales and other important data, you will be in a far better position to place your properties price to stand out from the competition.
6. Set a fair price. Be realistic and once you have done all your homework, completed the needed research to determine market trends and property values, the condition of your property and what buyers are paying these days for similar homes, decide on a number. Taking all emotion out of the equation, be ready to accept that anything achieved above your number will be an added bonus and anything below is a part of the process that comes with selling your home.
7. Price ahead of the curve. When the market was on an upward trend in 2001-2006, sellers could price their homes at higher than normal price and the market would eventually catch up to them. Given the current downward market, it’s the exact opposite. If you do not price properties slightly below fair market value you end up chasing the market down, resulting in a constant price reduction maneuver. Today’s sellers are finding it advantageous to price their property one or two percent below fair market value to be ahead of the curve.
8. Sweeten the deal. Throw in fringe benefits that will really make your home stand out from the rest when buyers consider their best choice. Whether you offer owner financing, the inclusion of six month’s paid homeowners’ insurance dues or even strike a deal involving the sale of all or some of your furniture. When you offer extra benefits to a potential buyer, those often end up being the “make it or break it” factor.
9. Less is sometimes more. Contrary to what it may seem, homes which have been priced 5-8% below the market price tend to generate multiple bids – in fact, banks will many times underprice their properties to create bidding wars with potential buyers. Keeping in mind that you face the possibility of losing a small amount off the top, the more inherent benefit of pricing below the market is that you can get multiple bids and get that property bid up above asking price.
10. Fix-ups add value. No matter what you choose to do, to what extent and how much you spend – any attention given to sprucing up your existing property will significantly enhance your leverage in assigning a more premium price to the sale. Anything from landscaping enhancements to steam cleansing of carpets, removing cobwebs and even applying a fresh coat of paint – all these actions ultimately work toward a higher asking price of your home.
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For some homeowners, a few of these tips prove invaluable while for others, all of those mentioned are pivotal in helping them assess your property’s selling value. It’s important that you look at your situation, your own neighborhood, the market in your local and regional vicinity – and based on these factors further fine-tune the advice we’ve given here. At the end of the day, you will gain the advantage of differentiating your property from that of the competition. Ultimately, you’ll find it easier to arrive at a figure when you have the guiding hand of these useful insights gained from years of real estate experts’ experience.
