Love Selling Your Home – Week 4
This is the fourth article in my series, ‘Love Selling Your Home: Minimize Your Stress, Maximize Your Profit.’ This series takes you through the entire home-selling process — from choosing the right agent (it’s not always me) to settlement day.
It’s so important to price your home correctly when it first goes on the market so that it sells for the highest possible amount.
That means not pricing it too low, but also not pricing it too high (buyers will cross it off their list). Even when inventory is low and buyers are eager to view any listing that comes up, you don’t want to make any mistakes with your initial pricing.
Here are my top 10 tips to ensure you price your home perfectly.
- Look at recent comparables or “comps.” It’s a given to look at these but how you interpret this information is what matters most.
- Know what a comparable home is for your own. It’s a home that is similar in size, layout, location, and condition and sold within the last six months.
- Pay attention to homes that have actually sold as well as what is currently on the market—your competition.
- Don’t just look at the asking price, but also the net price. Did it go up or down from the asking price? Did the seller pay closing costs?
- How is the comparable home different than yours when you take out size, location, and condition? Did it have a better or worse view, a better or worse street, a better or worse yard? Be honest about the differences and how they would impact the price of your home.
- Only consider the most recent homes that have sold. Appraisers typically look as far back as six months to arrive at a value, so you should also consider homes that have sold within the last six months. The more recent, the better, especially if the market is rapidly changing.
- What you paid for your home a few years ago or what you could have gotten at one time is not relevant when pricing your home to sell today. Please don’t get stuck with this thinking.
- You can’t count on getting every dollar you’ve spent on your home throughout the years. Unfortunately, sometimes what we like is not what everyone else likes. Every homeowner hopes that any upgrades are solid investments with a good return. It’s time for some honest evaluation and understanding of how well your home shows to today’s buyers (not those from three or five years ago).
- What’s the inventory now or in the next few months? If there is less inventory and more buyer demand, then you may be able to set your home’s price a bit higher. However, remember to tread carefully here so that you still attract potential buyers to view your home. That way, they are the ones who could push the price up due to multiple offers.
- Try to avoid putting your home on the market during a holiday weekend and/or the holiday season at the end of the year. Homes always sell for less during these times. Don’t aim for Memorial Day weekend, but the weekend or two before it!
Pricing a home is both an art and a science. Many other factors contribute to pricing, which I would be happy to share with you!
