How To Price My Home So That It Will Sell Fast
Are you not sure how much your home is actually worth? Do you want to get the best possible offer on your home, but you also don’t want to wait months for the right buyer? You’re in luck. It’s possible to price your home so that it will sell fast as long as you learn a few things about your market and competitive pricing.
While sometimes you need to focus on physical labor and repairs to drive up the value of your home, there are also competitive pricing strategies that can work wonders of their own. The average home in 2018 sold in 68 days, but you can speed up this process with some smart thinking. If you’re asking how to price your home so that it will sell fast, you’ve come to the right place.
Why Your Home Price Matters
Many home sellers make the mistake of pricing their home too high. This makes sense. They value their home, and they’ve come to love the property. Why wouldn’t anyone else see this same magic? In reality, pricing too high can be detrimental to the entire home selling process.
The main dilemma in pricing a home too high is that it quickly loses its appeal. After the first two to three weeks of showing the home, demand will wane. This is a normal part of the process, but you’ll miss out on that excitement of those new home buyers viewing your home and wanting to make an offer. While you can always lower the price later, you’ve already missed out on the initial prospects.
On the other hand, pricing your home too low is also a mistake. Not only will you drive the market value lower, but you’ll miss out on some lost income. Ultimately, pricing is an art, and it’s recommended that you use a real estate agent to help you with this process. Now, let’s break down how to price your home to sell fast.
Step 1: Review Your Market
First, you need to take a close look at what other homes in your area are selling for. You should only look at other homes that are similar to yours and listed in the same neighborhood within three months. Consider a few factors when comparing homes nearby:
- Home age
- Square footage
- Construction type
- Neighborhood dividing lines
- Neighborhood physical barriers (railroads, freeways, streets)
The reality is that homes across the street from each other often have widely different values and prices, so don’t use this is your only source of information. What matters the most is “desirability.” This might be a difficult thing to pin down, but you’ll get an understanding for it the more you check out the local market.
Step 2: Look at Expired and Withdrawn Listings
Now, you’re going to pull a similar list of homes that have been listed recently that have either expired or been withdrawn. Why look at these failed listings? So you don’t make the same mistakes.
How long were those properties on the market? Can you find any patterns as to why they didn’t sell? Were they priced too high? Too low? Are there any features that they share in common?
Step 3: Be Honest About Your Home
This is the hardest step. No matter how you feel about your home, it’s often hard to look at it in a way that isn’t biased. Now that you’ve seen other local homes for sale, you should have an idea of where exactly your home stands.
Look at your home through a buyers’ eyes. What does a reasonable price look like? Be honest with yourself during this process. If your home is outdated, in need or repairs, or an in an undesirable location, all of these things will play a role. On the other hand, if your home is recently renovated and full of charm, you might raise the price up. Again, a real estate agent can help with these steps.
Step 4: Understand Price Points
There’s a lot you can learn about how pricing works, but one thing to look at in particular is specific price points. Most buyers consider homes between price ranges that differ by five to ten thousand dollars. For instance, they might be in the $250k – 260k range.
That means you want to place your price at the top of one of these “ranges.” Think of it this way. Pricing your home at $239k is likely to give you the exact same number of offers as $236k.
Step 5: Invite Critiques
Finally, you need to be open to feedback from both buyers and appraisers. Sellers should be open to constructive criticism in the early stages. An agent-only open house, for instance, is a great chance to invite suggestions about the price, curb appeal, and selling quickly.
Selling your home quickly can be complicated if you don’t know where to begin. This list above will take you step-by-step through the process so you can land the best sale on your home without the hassle. As long as you’re competitive with your price, your home should sell quickly.