Determining a price for your home is harder than you think. Many factors come into play, and everyone wants top dollar, despite what the market will bear.
Finding out the worth of your home before you sell it will dictate how long it sits on the market. This knowledge can also adjust expectations on how many offers you get in. You need a good way to nail down the ideal price.
Here is how to price your home for sale:
1. Get an online home evaluation
An online home evaluation is a good place to start. A network of detailed property data online gives you a chance to look up your home. By using these instant home value estimate tools, you can see what other people are already checking out when they look to buy in your neighbourhood. You will not get a perfectly accurate price because more to your evaluation, including repairs and finishing, but it guides your understanding of a price range to work with.
It uses property sales comparisons, and some nearby homes may have sold for less than the current value for several reasons, so make sure to use this as a preliminary tool for your home pricing.
2. Have a few real estate agents give you an evaluation
Talking to a real estate agent is a perfect next step because you will have a property professional coming into your home. They will already know the comps in the surrounding area, but they will inspect your place to see what’s inside.
They know how to price homes for sale and will look for extra features that can bring the price up. With three agents giving you a quote, they should all be pretty close in price, but one may overprice your home to get the listing. Be cautious and let them know that several agents are working with you. That will help them sharpen their pencils and be thorough.
3. Don’t overvalue all your renovations
It is in our nature to make our house a home. That may mean putting on an addition or redoing the kitchen. Flooring, lighting and painting can transform an old home and make it look amazing, but unfortunately, when it comes time to sell, the money you put in may not come back out.
Understand what renos give you a positive ROI because these are the things that help sell a home and get you top dollar. You may have to make repairs like roof or mould issues, which are necessary. Call it the cost of home ownership, and don’t try to recoup every cent you put into place.
4. Put aside your emotions
Nobody is going to love your home more than you do or did. Buyers may be excited when they walk through, but you need to use logic when setting your price, so it sells fast. Your love of the home doesn’t add monetary value, so be realistic and try to see it from the buyer’s perspective.
5. Factor in your reason for selling
If you put your house up for sale in a hot market and it’s priced right, it will sell quickly. You may even get multiple offers to drive up the price. As long as you are not in a hurry to move, you can wait for the right person to come along and pay you to want.
Not all situations are like this, and you may need to sell quickly because of:
- A job relocation
- Sick family member
- Financial reasons
When you need a quick sale, the price will have to be more competitive, which means less net return when it sells. Your agent can help you make these price adjustments based on your current situation but will still help you get the most you can.
6. Find the sweet spot
Awe, the sweet spot. This is the perfect price for your home based on the current market conditions and what other inventory is available.
Price too high and you may turn potential buyers away just because of sticker shock. When fresh on the market, it’s time to attract attention because you are the new listing. You won’t know how many people you disqualify with a high-priced listing.
Price too low and you potentially leave money on the table. While it may be a good strategy in a hot market, you may get exactly what you asked for. Underpriced homes also scare off savvy buyers because they wonder what is wrong with the place. They won’t put in an offer if the price seems too good to be true.
Pricing your home correctly is no easy task, but this major investment has become a valuable asset, and you need to maximize the gain. Use these tips as a guide to pricing your home and watch as buyers flock to purchase their next dream.