Figuring out how to price your home when preparing to sell puts many into a classically coined “Goldilocks” situation; you don’t want to set the price too high and scare off potential buyers, but you also don’t want to sell too low. In our shifting Luxury Market of today, it creates a quandary. Proper pricing can provide more exposure to buyers, expedite the home sale process and it prevents your house from sitting on the market for too long. Here are a few pricing strategies to consider when deciding how to price your home for this market.
Be Cautious of Overpricing
Though it’s easier said than done, you want to avoid overpricing your home. We know that the past couple of years felt like anyone could price their home for nearly anything and expect a bidding war, but those days are slimming. Potential buyers may not see the listing if it is priced too high or they may ignore it altogether. In other words, buyers have some leverage again.
Overpricing can also cause the property to sit on the market for too long and become “shopworn”, causing it to sell for less down the road. Since most of the activity around your home’s sale occurs within the first week or so, it’s vital for it to be properly priced and create that sense of urgency in the buyer’s mind.
Watch the Seasonal Market Shifts
The season you decide to sell your home during can have an impact on your home’s sale. In Denver, homes sold in early March saw sales for $30,000 over the listing price. Monitor the home selling trends throughout the four seasons, as you may see buying patterns shift before your eyes. For example, you may see a surge in home sales during the end of autumn as people are eager to purchase and move in quickly before the first major snowfall.
Sale Price Doesn’t Always Mean List Price
The price you list isn’t always the sale you get. Buyers will often make an offer that’s slightly lower than your asking price, and then it is up to you whether to accept, deny or begin negotiations. But it doesn’t stop there. Once the buyer has the house appraised and inspected, they may ask for a price reduction to cover any issues that were uncovered along the way. It’s important to set a price that takes these potential reductions into consideration, without also overstretching and setting the price too high.
Don’t Forget the Internet
Thanks to the internet, we have access to tons of property data at our fingertips. You can find out when your home was built, the last sale price of your home, look at current real estate market trends and even get a free home value estimate. The free estimate may be a good starting point to work from if you are in the very early stages of selling. Though it may not become your exact listing price, it will provide you with a general idea of your home’s value and how you stack up to other houses sold in your area.
Shop Your Competition
To ensure you are pricing your home in the appropriate range, observe how other properties similar to yours have sold recently. The houses should be around or very close to your own in terms of size, type, age and in the same location. While you can do some of this research yourself, our expert brokers at Kentwood can prepare this for you as well during the home selling process.
There are many different factors that play into pricing your home appropriately. If they are all taken into thoughtful consideration when determining the listing price your chances of a speedy and successful home sale will skyrocket. If you are ready to put your home on the market, contact one of our experienced Kentwood brokers today at Kentwood.com.