5 Tips to set price for your home to sell
There are many important things to consider when it comes to pricing your home to sell. Home pricing isn’t as simple as it may seem which is why it’s so important to hire an experienced team to market and sell your home. We feel that pricing a home comes down to these 5 important factors.
Know the Market.
This is the most obvious part of pricing a home. While, yes, it is important to look at what price your neighbors have sold for, it is necessary to look deeper than that. We regularly have clients that say “My neighbor just sold for $335,000”, but unfortunately pricing is not as simple as looking at the sales price of the home down the street. Our team prices your home compared to similar properties: the same style home (one story, two story), built during the same time period, number of bedrooms and bathrooms, a similar square foot home. We also look at upgrades like granite countertops, wood flooring etc. We use this market knowledge to property price your home according to the local market
Don’t Over Prepare.
When it comes to pricing everyone wants to push the market and get as much for their home as they possibly can. A big part of getting your home ready to list is staging and doing some repairs. It is important to keep the repairs to things that will add value and increase your bottom line. If none of the homes in your neighborhood have granite countertops it is not a “worth it” expense to take on. You will end up spending more to put them in than you will make for the upgrade. We will go through your home with you and discuss all the improvements you are considering and talk them through. We will help give ideas on how to cut costs, what projects will increase your value and which ones are best cross off the to-do list.
We are big on having a pricing game plan set upfront. We want every listing to be priced so that it is bringing in showings from day one. However, it has happened that after the first week or two, the showings are not as active as we and our clients had expected. If we look at the showing feedback and there isn’t any feedback that is fixable then it comes down to price. We like to have an upfront conversation with our clients about at what points we will be discussing price changes. It is better to drop the price $5000 in couple weeks than for the listing to stay stagnate on the market.
Motivation is another important thing to consider when it comes to pricing a home properly. We always like to know what our client’s motivations are. Do they need the home to sell as quickly as possible due to a job relocation or is getting the home sold for top dollar more important? There is always a range when it comes to what price to list a home at…if selling the home quickly is the goal we will take that into consideration when we finalize the list price.
Price vs. Profit
The final factor in pricing is to look at the bottom line for our client. Profit and price are not always the same. We look at the total package of the home and what expenses may come up during the transaction. If major repairs are needed we will price the home accordingly from the beginning. We will work with our clients and the condition of their home to agree upon a list price that will net them the most after all is said and done.
Knowing these 5 tips will help when deciding on a listing price with your real estate agent. While we know there are a lot of things to ultimately consider, these make the top of the list. So make sure to keep this in mind when it’s time to price your own home!