There are several things we recommend home sellers do before they decide on the listing price of their home. Read our article below to find out how to get your listing price right.
Do Your Research
First things first, you need to do your research. This means understanding your market’s current conditions, and how your home compares to the competition.
Start by looking at past sales of comparable homes within a ¼ or ½ mile radius from your area. Look at homes with similar square footage and of comparable age and condition. You can safely ignore anything further back than the past three months, as professional appraisers don’t take these figures into account anyway when making valuations.
You should also make sure the houses you’re looking at aren’t outside your neighbourhood’s dividing lines. You’d be surprised at how much market conditions (and prices) may differ just a few meters down the road, even for identical homes.
More importantly, make sure you’re looking at the actual sale price, not the listing price. Or, even better, compare the original listing price to the final sale price. This will help you set your expectations and get a better idea of how your deal might work out.
Understand How Real Estate Searches Work
Most prospective buyers ask their estate agent to look for homes priced under a certain threshold. Some savvy agents will widen the search so that it captures homes priced just a little over the buyer’s price range. However, there’s still a risk that your home might be missed by a whole segment of buyers just because it’s not priced correctly.
For this reason, you really need to understand what your ideal buyer’s price range is and be careful to list your home accordingly. Be strategic. A mere couple thousand Dollars can be the difference between a quick sale and months on the market.
Think Like A Buyer
Selling your home is often an emotional time.
Unfortunately, your sentimental attachment may have the unintended consequence of rendering you unable to look at your home critically and valuing it correctly. At best, you may overestimate how much you think your home is worth. At worst, you risk pricing yourself out of the market.
This is where thinking like a buyer comes in handy.
By asking yourself what kinds of things you value in a home and comparing them to what you have in yours, you’ll restore at least some level of objectivity. More to the point, the things you consider desirable in a home are probably the same things many prospective buyers will be looking for. This means you’ll get a better idea of your home’s actual appeal, which in turn will help you price it more accurately.
Leave Some Room For Negotiation
Most of the time, some negotiation is par for the course in real estate transactions. Unless you’re in a really strong seller’s’ market, you should expect – and be prepared to consider – at least a handful of offers under asking.
You should plan for this eventuality by leaving yourself some room to manoeuvre. In other words, while you should be wary of pricing your home too high, it’s a good idea to list it for a little bit higher than you’re prepared to accept. That way, you won’t feel like you’ve left money on the table.
Need help getting your home’s listing price right? Speak to us today.
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