Did you know that pricing your home correctly can be the make it or break it move to selling your property?
When it comes to pricing a home, there are a lot of factors that need to be taken into account. Pricing your property is a delicate matter and should be treated with a level of consciousness mindful of the surrounding area. Don’t just slap a price on your property and hope it sells. “Testing the market,” as this is called, can be detrimental to your selling experience.
If you’re looking to price your home to sell as quickly and easily as you can, here’s a few tips to pricing a home to sell.
Know Your Market
When it comes to picking the sales price, you need to be aware of the prices around you. Pricing above the average market rate can be detrimental to your sale as it can deter many potential buyers from even viewing your home. For those using budget search parameters, your property may not even appear in their listings at all. Regardless of what you think your home is worth, if the going rate for similar houses in your area is $10k cheaper than your listing price, you aren’t likely to get many bites.
Always do your market research first. Pricing on the lower end of the spectrum when it comes to similar listings will help you to create a drive to your property—and a sense of urgency.
Pick Your Number Carefully
As you set your price, keep in mind that many buyers will use a search engine with budget parameters to look for properties to view. Pricing your property just below a round number will help to push your property into more search results. For example, if a couple is searching for a home in such and such neighborhood below $400k, pricing your property at $399k will get into their search results.
Stick with non-specific figures, too. If your home is estimated between $250k and $300k, don’t price it at $286,666. Stick with something a little simpler, like $287,000 or $280,000. Random pairings of numbers get sellers wondering if that’s what the seller owes on the house—meaning they have no flexibility left in their sales price. This can often lead to buyers refusing to look at the property at all.
While setting the go-price is important, keeping vigilant is equally as important. Markets change, factors differ. If you set your listing price and then see little movement, it is a good indication that your home is priced above the going rate. A home’s biggest turnover rate is within the first 30 days. If you see very little traffic—viewings, inquiries, bids, etc.—within the first two to three weeks, chances are you’ve outpriced yourself. Reevaluate and adjust accordingly. Don’t waste time sitting on the market waiting for a bite. A home that has been listed for an extended period of time will make buyers wonder what has kept it from selling, which can cause speculation and doubt.
When pricing a home to sell, it is important to always do your research. Research agents before you sign a contract and always research market values. Doing a little legwork before listing the home can go a long way in moving your home quickly. Even if you have a beautiful home, don’t bank on it to sell itself. In real estate, it’s all in the numbers.