Pricing your Home to Sell
Pricing your home to sell can be one of the most complicated AND the most important things you do when you are selling your home.
Just to emphasize how important pricing is, there have been numerous studies that show the longer a home is on the market, the less money it will sell for when it finally does sell. Optimally you want your home on the market for 4 months or less unless there are extenuating circumstances like, an overall down market or other market factors that make all the homes in an area slower to sell. You don't want to be the one home on the market for 8 months if all your neighbors sold their homes in 3 months.
That is why pricing is SOOOOO IMPORTANT. If your home is overpriced you may not even get interest, so no one will see your great home! To get the best price you need to sell the home at a competitive rate, and you need to list your best price first.
Overpriced homes just sit on the market longer and eventually sell for less. If you price your home correctly it will sell faster and ultimately sell for more. The longer the home is on the market - the more mortgage payments you have to make and the less you will net from the sale.
HOWEVER, your home is your biggest asset so you don't want to price too low either. These are some key factors to consider when choosing a price to list your home for sale;
1. What other, similar homes have sold for in your neighborhood, how far you search for comparable properties will be relative to how many homes are in your area.
For example, if you live in a high population area then you may need to keep your search within a mile of your home.
Sometimes the desirability of one neighborhood can be vastly different than the neighborhood across the street. Factors that affect desirability include, but aren't limited to: Lot, School district, neighborhood prestige, and home features.
If you live in a rural area you may need to look at homes in a wider area to get an idea of what similar homes are selling for.
2. How hot is the market in your particular area? The market is always fluctuating. There are some areas of town that the homes fly off the market as soon as they are listed because the supply of homes doesn't meet the demand for the area but, 5 miles away homes might languish on the market.
3. How much competition do you have? Are their 10 similar homes for sale in your neighborhood? If someone has the option to buy 1 of 10 similar properties they are most likely going to buy the most affordable option. BUT, if it is rare that homes are listed in your area then the people that are interested in moving in will have to compete for your home.
4. Stay aware of what is going on in your area. Once you list your home at a selling price you want to continue to monitor market conditions. Your neighbor might have a price reduction or 4 new homes might be listed in your neighborhood. If it isn't selling, and you aren't getting showings then your price is too high and/or you aren't getting enough exposure. If you are getting plenty of showings but no offers there might be conditions that are affecting the desirability of your property.
I hope these tips have helped and remember, I am here to offer you a complimentary comparative market analysis and a staging consultation if you get stuck and need a helping hand.