The Top 3 Tips for Pricing Your Home Right
It can be difficult to price your home right when preparing for a sale. When you’re looking at potential figures that lie in the hundreds of thousands of dollars, it’s easy to become complacent. The reality is that it’s the small changes in your final pricing that can have a bigger impact than you think, and if you decide to throw a ballpark price at the property market, you could miss out on a little extra to afford that holiday you’ve been wanting.
Taking the time to price your home right rather than simply rushing to the market will help for an easy and profitable sale, so here’s the top three tips to consider before putting that ‘For Sale’ sign in your yard.
- Pick a Price That Gets Noticed
Nowadays, if people are looking for property to buy, they head straight for Google or a local real estate search engine to see what’s available within a certain price bracket – say, $500,000 for example. They will then set up an automated search for properties that match this price point. If your home is listed at $510,000, then that buyer won’t see it. So, if your list price is higher than the $500,000 price bracket as in this example, then you may miss a good chunk of potential buyers. These price brackets will vary based on your location and the overall pricing of the market in your area, so do a quick search of a local online database or talk to an agent to get a more accurate idea.
Don’t be tempted to get creative with price either. Choosing figures that lie within popular price points such as $787,777 is a surefire way to attract the wrong type of attention, much like a house painted bright pink. A buyer may get curious about the seller and find reasons not to consider a purchase with you. It’s best to keep yourself as invisible as possible, since you’re showcasing the property and not its owner. Pick a price that turns up in search engines and gets your property noticed, not red-flagged.
- Price to Attract Traffic
Selling a property is as much about psychology as it is about numbers. What you need to consider when you list your home for sale is that the price attracts a reasonable volume of traffic to your open home. With such high stakes in real estate, a potential buyer doesn’t want to be the only one showing for an open house. This gives the impression that there is something wrong with the property, or the deal may be ‘too good to be true’. Price your home to attract viewers by ensuring your listed price is at the lower end of the value range. Doing so may create interest among buyers and encourage a ‘herd’ mentality – people following each other because everyone else is doing the same. Don’t be too worried about the lower asking price. If you’re attracting more potential buyers, then there’s a greater chance of a bidding war which could easily drive your price higher than what you’re asking. Remember, it’s all a game of numbers.
- Price According to Value, Not Market Condition
If you’re listing your home on the market and you’re in an area where prices are going up, you may be tempted to list at a higher price just to see if you can get it. That’s not a good idea. Pricing your home according to the right and true value of your home is critical to getting both a quick sale and the best possible price. Research shows that to begin your listing overpriced and dropping it to counteract its extending period on the market usually leads to a discounted sale. In general, the longer your home stays on the market, the lower the sale price will be. Price your home according to its true value, as assessed by a professional. Avoid the temptation to set your list price based on what you paid, the mortgage balance, or your desired profit. Your home is worth what the market will pay, so be sure you discuss your sale price with a realtor and ensure you get a comparative market analysis done which explains exactly how your home should be priced.
Pricing your home right is critical to ensure you get a quick, profitable sale for your property, and the price you deserve. These top three tips are a great start on your road to selling success, but you don’t need to do it alone. Remember that a knowledgeable realtor can assist you with their extensive knowledge of your local property market, so when you’ve gotten a grasp of the tips above, be sure to get in touch with one in your area!