When selling your home, one of the most difficult decisions you will make is setting a sale price for your property. While you certainly want the most money for your home, if you price your home too high, your appraisal could come back low, causing complications to your transaction. You also increase the risk of a low offer, and you deter potential buyers from the property. However, you only hurt yourself if you price the home too low. To help you choose an accurate sale price, here are a few things to consider.
Find an Experienced Real Estate Agent
When placing your home on the real estate market, first, you need to hire an experienced real estate agent. This individual can be your greatest resource as you price your home to sell. For example, you will want to establish a sale price with the current real estate market in mind. If it is a seller's market, you will price a home much differently than a buyer's market. A real estate agent can provide this information to you and can offer guidance as you make your decisions.
Keep in mind that a real estate agent will not establish the sale price for you. They can provide guidance and recommendations but ultimately, the final decision rests with you.
Request a Comparative Market Analysis
When working with a real estate agent, request a comparative market analysis. This is a detailed report of sold homes in the neighbourhood that are similar to your own. You can use this information to compare your own home and more accurately estimate the value of your property. Keep in mind that every home is different and you will need to take into consideration the location of your property, the condition of your home, upgrades you have completed, etc.
Consider Online Price Range
According to one report, 98% of older millennials, 89% of boomers, and 72% of the silent generation search online for homes for sale before hiring a real estate agent. This means that as you price the home to sell, you need to consider the online process. You want to make sure your home creates a strong impression on all buyers.
To do this, spend some time on these house hunting websites and look at the price range search features. Price your home so it fits the best price range and is most appealing to buyers. For example, if you want $500,000 for your home, you may consider pricing your home at $499,999 as it will appear in the lower search results and may be seen by buyers in both the $400,000 and $500,000 price ranges.
Consider a Home Appraisal
If you are worried about establishing an accurate sale price, you may want to receive a home appraisal. During this process, you will hire a third-party professional to evaluate your property and give you the most accurate estimation of your home's value. Having a home appraisal can also reduce the risk of receiving a low offer as it lets buyers know that you priced the home accurately.
However, if you do consider a home appraisal, be aware that you will be required to pay for this appraisal, which can cost you several hundred dollars. The buyer's lender will also likely require a second appraisal after an offer has been accepted and you may receive a different value amount.
Be Flexible
Once you have established a sale price, be flexible. Setting a sale price on your home is a constant process. You cannot simply set the sale price and forget it. If your home has received little traction and has been on the market for some time, you may want to discuss price adjustments with your real estate agent. Reducing your sale price, even just a little amount, may be enough to spark interest in potential buyers.
By pricing your home accurately, you will find that the home-selling process is more enjoyable and you will have an easier time selling your home.
