Pricing to Sell
Pricing your home correctly is essential when you are selling your property. If you price too high, you run the risk of deterring potential buyers and thus prolonging your home's time on the market. If you price too low, you may be undercutting yourself. It is therefore essential to consider all of the factors that go into pricing your home. Your real estate agent can help you find the right price by providing you with the education and resources you need to make a pricing plan.
There are several factors to consider when pricing your home including the location of the property, the condition of your home, the competing local price points, and the conditions of your local real estate market.
Location: location is important when pricing your property. Your home's location has a high impact on the current and future value of your home. Certain buyers will be attracted to more urban locations, while others are going to be looking at a more rural setting. Play to the strengths of your local area and consider how that might factor into your pricing model.
Condition: The condition of your home should also factor into your pricing. Have you recently remodeled or upgraded the appliances? Your agent will help you to consider your home's condition and even potentially find ways to increase the value through some minor upgrades.
Local Market: Considering your local market conditions is one of the most essential tasks when pricing your home. Your agent will provide you with a market analysis of your area. Together you and your agent will be able to look over your local market trends and conditions in order to find the right price for your home.
Competing Local Prices: Your agent will also help you to research the competing home prices in your area. You will want to consider how much homes that are similar to your own are being listed for.
Some other things to consider when pricing your home:
Work with your agent to come up with a pricing contingency plan. If your home doesn't get any offers after a certain span of time, have a plan in place to help generate more interest.
Your timeline and needs will impact your pricing plan. If you are under a deadline to sell quickly you may have less leverage when pricing. You will want to construct your pricing plan according to your needs and schedule.
Time of year, interest rates, and demand will also affect your pricing options. Certain times of the year are more practical for selling a home (people buy more often in the spring than in the winter, for example). Interest rates and demand are also important to consider. Are interest rates going up or down? Are there a lot of available properties in your area or is there a high demand for space? Your agent will help you answer these questions and factor the results into your pricing plan.
If you're considering selling your home, contact an agent today to get a free comparative market analysis and begin drafting your pricing plan!