House for sell

One of the most significant concerns clients have is whether they are pricing their homes correctly.

It makes sense that this would be an area of anxiety because most people want to get a fair price for their home. In addition, they don't want to have to wait for an unnecessarily long time for it to sell.

It can be a balancing act to find the right price, and it often involves trust between our clients and us.

The good news is that pricing a home isn't a shot in the dark. There are some tried-and-true methods to find out the best and most efficient possible price for your home. These methods are what your realtor will use to give you a recommendation.

Comparative Market Analysis

You have probably heard of the term Comparative Market Analysis or CMA. Any real estate agent will be able to provide you with a CMA. It is a compilation of:

  • The most recent sales in your area taking into account the size of the homes sold and other comparable details.
  • How many days the house spent on the market.
  • The final sale price.

Since this information is public record, you can usually obtain a CMA from several potential agents if you are still in the interview stage of your process.

If you want to do some preliminary research on your own, you can most likely find this information yourself. Or you can hire an independent appraiser and pay a few hundred dollars to get a fair market value.

For any of these methods, you need to look at comparable houses:

  • Within ½ mile from your house.
  • Listed in the last three months.
  • About the same square footage as your house.
  • About the same age.

Learn From the Competition

The next thing your realtor will do is to look at the details of the other listings in your area. Considerations include:

  • Of the homes that sold, what was their initial asking price?
  • How many price cuts did they make before selling?
  • Did they price their home too close to the asking price of a similar property?
  • Are their homes objectively nicer or less nice than your home?

In this way, you can learn from the mistakes of your competition. If there are already several homes for sale at a similar price point, it makes sense to choose something higher or lower that will bring in a different pool of searchers.

You can also avoid making several small price adjustments - which can be more detrimental to your sale than one significant correction, and you can see if your neighbors made the mistake of pricing their home too high to begin with.

Many sellers mistakenly believe they can wait for the "right" offer to come. However, the truth is if you aren't getting an offer fairly quickly, it may end up hurting your chances of ever receiving an offer at all.

We know your home is special to you, even if you want to move on. But it helps to look at the competition with a critical eye.

Is the competition showing something a little more beautiful than you are?

Then, it is time to be honest with yourself and price accordingly - to sell.

Price for Online Searches

A majority of all real estate transactions begin online. Next to first-rate pictures and descriptions, your price is the first thing attracting buyers to your house.

You want to avoid random pricing, no matter how significant a certain number is to you. Make it a number that is easy to understand at first sight, not $234,567.

Another tactic is to avoid century pricing, but price a bit below. So, don't list your home at $300,000, but rather something like $285,000 or even $299,000.

Keep in mind, as well, that if you price your home at $305,000 you will be cutting out a large portion of people searching in the $300,000-and-under range. Better to get more eyes on your house than to try to obtain an extra $5,000.

Bringing it Home

Home pricing isn't an exact science, even with the tools explained here. That's why you have to work with your realtor and not be afraid to make a change to get your house sold.

If you have any questions about pricing your house to sell, we would be honored to help!