If you are getting ready to put your home on the market, then you know how difficult it can be to determine just the right list price. If you list too high, it will sit. If you list too low, you lose money. So what can you do to determine that just right list price?
Here are a few ideas that can help you decide on the perfect list price.
1. The number one best way to determine a good and realistic list price is to ask your realtor to perform a survey of the other houses for sale in your area. What were the actual sales prices versus the list prices. What are the list prices of the homes that are sitting stagnant on the market etc.
2. What is the average number of days on the market for the homes for sale in your area. You are going to want to price your home relative to other comparable homes in your area in order to get a sale. Otherwise, your home may sit on the market and you will lose time and money in the long run.
3. Study the list prices versus the sale prices. This will show you what other sellers think their homes are worth versus what the buyers for your area are actually willing and able to pay. This could work in your favor if homes are selling for more than their listing price because this indicates that your market is a seller’s market.
4. How much competition do you have. Don’t just look up and down your street or subdivision. Look at nearby areas that buyers may also consider. Additionally, don’t only think on terms of quantity, you must also consider the quality of those homes as well. If you live in a neighborhood that has many foreclosures, you may have some stiff competition when it comes to pricing. However, if your home is far superior and move in ready and you have set a reasonable listing price this could work in your favor.
5. Go to Open Houses in your area to gather information about their condition versus their listing price in comparison to yours and others in the neighborhood.
6. What is good about your neighborhood. Do you have a sought after school district or collage? Buyer demand should weigh heavily on how you price your home.
7. What time of year is it. In some parts of the country, you may be able to get more for your home in June than you would in October. Some people do not like to move during the school year. In addition, if you live where there is a lot of snow, then you will probably find it easier to sell your home during the time of year when there is no snow and it is easier to get around.
8. How motivated are you. If you need to sell your home quickly, then talk to your realtor about how to price your home to sell it more quickly. You want to sell it a little less than your competition, however, you don’t want to give away the farm!
If your home has been on the market for a while, or you have had lots of showings but no offers, it’s not too late to get it right.
Thanks for Reading,
The Inman Team