How to Price you home
Correctly pricing your house can be tricky sometimes. It is a very important factor while selling a home. Overpricing can lose the chances of selling the house after the first two to three weeks of listing it.
Sometimes selling your home can be an emotional experience and there is a lot of potential for making mistakes. Once you have decided to sell your house think of yourself as a businessman rather than a homeowner. With a little know-how, you can avoid the risk of committing little errors. Here we present some tips by which you can get a reasonable price without much hassle.
Perform comparative Market Analysis (CMA)
Comparative market analysis is something to look into before pricing your house. It provides a compilation of recent property sales from your area. If you are working with an agent he can provide you with the details or you can perform your own research online to get a good idea of the value of your house. It takes into consideration home details, days on the market, and the final sale price.
If you are doing analysis on your own, look at every similar home that’s been listed in the same neighborhood as your property over the last six months considers, the following points:
- Consider areas ¼ to ½ of a mile from your home.
- Collect data of the last 3 months.
- Houses must be the same age as yours
- The square footage must be within 10 percent of your house
Check Out prices of Sold Houses
Check the prices of sold houses and compare the list prices to the actual price they were sold at. This can give an idea of any possible price reduction.
You can research online as most local real estate offices publish sales reports on their social media or websites. Houses can be sold more than 100% of the list price in a seller’s market. Adjust final sales prices upward or downward for lot size variances, configuration, and amenities or upgrades.
Online search price range
If you are putting your house on sale online, set its price in a systematic way. Most buyers search for a price range that they can afford. Such as if a buyer is considering buying a house within a range of 350,000 to 400,000 and you have priced your house 400,500 it won’t appear in his search. If you price it 399,999 it will appear in his search and he might end up buying your house.
The final price of the house can be found until it is sold. In order to find the price of a pending house, you can call the agent. They can sometimes tell you the price but some won’t.
Examine the history of pending listing to get an idea of the market. It will help to determine the price of reduction.
Visit listed houses
Sometimes the sellers don’t disclose the actual price of the house online. Tour these active-listing houses and have a look from the buyer’s perspective. Note what you like and dislike about the house. Observe the general feeling while entering the house and try to recreate the positive feeling in your house, if possible.
Avoid unclear pricing
The items priced under century numbers tend to attract more buyers. If an item is priced 9.95 instead of 10 or 199.99 instead of 200 it will be more approachable than items priced as whole numbers.
But houses priced at a random or obscure number such as 234,666 distract the buyer and gives a bad impression of the seller. Avoiding such numbering can help you to secure a good price for the house.
Other factors such as seasonality, inventory, buyer, and seller market can be considered before pricing the house. You can also seek external help such as by hiring an agent that can carry out these tasks for you.
How to Price your home