Top 4 Tips for Pricing Your Home
1) Avoid Overpricing to “Test the Market”
Many home sellers hear that the market is “hot” and assume that everyone is getting crazy prices for their home. While in some areas and price points the market is increasing quickly, it is still best to price your home correctly from the beginning rather than shooting for the highest sale in your neighborhood’s history and sitting on the market for months on end. The longer you sit on the market, the more stale your listing looks and buyers are more likely to come in at a lower price. By pricing correctly from the get-go, you create more interest and get more interested buyers through your home for a quicker sale at more favorable terms!
2) Don’t Anticipate Getting Every Dollar You Put in Back
While you may love your $50,000 outdoor kitchen or luxurious imported bamboo floors, you can’t always expect to get a premium or even a dollar for dollar return on all upgrades to your home. While updates go a long way when it comes to getting your home sold, you need to know that some upgrades are just for your enjoyment and will not yield a huge return when it comes time to sell. Be sure to consider your neighborhood when adding improvements meant to increase sales price. We always caution to not “over improve” for the neighborhood!
3) Use Comparable Sales in the Neighborhood
No matter what a buyer thinks your home is worth in the market, as long as they are financing the property it is still subject to appraisal. An appraiser doesn’t look at the value of your fancy soft close cabinets you added in the kitchen or your trendy decor, they base the value of your home on comparable sales in the neighborhood on a price per square foot basis with adjustments for differences. Don’t expect to get a huge premium on price per square foot compared to your neighbors when it comes time to sell!
4) Don’t be Stubborn
It is important to understand what the market is telling us. If we missed the mark and priced too high, we will know that in a few weeks on the market. If priced correctly, homes should see consistent showings and interest. If those things aren’t happening, its time for us to talk about a reduction in price. We are better to be proactive about price than let your listing sit and get stale on the market.
Have questions about what your home is worth in this market? Feel free to reach out to us for a free market analysis on your home.