How to Price Your Home to Sell
July 31, 2016
July 31, 2016
Regardless of the state of the market, well-priced homes sell many times faster than overpriced ones. Unfortunately, many property owners don’t know how to judge the proper listing price for a house, especially if they plan to offer the home “For Sale By Owner.”
Fortunately, these easy tips will help you price your home to sell:
- Investigate Comparable Homes in the Area. Real estate professionals use “comps” to set the price of a home, by looking for other houses on the market (or recently sold) that have a similar size, condition, and features to the house they hope to sell. Comparable properties normally sell for comparable prices, so find the best “comps” and price your home accordingly.
- Choose a Price That Shows Up on Target Buyers’ Searches. When searching for homes, buyers (and their estate agents) search for houses within a range of target prices. Pricing your home at $499,000 ensures you show up on searches for houses “under $500,000,” whereas pricing the house at $501,000 cuts you out of that search.
- Price to Sell, Not to “Negotiate.” Some sellers price their houses high in hopes of encouraging buyers to “make an offer,” but buyers often don’t want to haggle about an overpriced home. The closer your asking price is to the reasonable value of the property, the more you encourage buyers to make an offer.
- Consult a Real Estate Agent. While it’s not appropriate to interview listing agents merely to obtain a price (and then proceed to list “for sale by owner”), if you don’t understand the real estate market, and find it hard to evaluate comps and set a price without assistance, hiring a real estate agent is wiser than trying to sell a house on your own.
Obviously, nothing can guarantee that any given home will sell quickly, or at a given price. Even experienced real estate agents often consider home pricing a challenging endeavor, and some houses are more difficult to price than others.
If you have trouble pricing your home and don’t want to hire a real estate agent, or if your home’s condition is likely to hamper a rapid sale, consider selling your home to an investor like 4 Brothers Buy Houses; investors can often close a deal in just a few days, without requesting additional price reductions or repairs like many buyers do. For more information, or a free estimate, click here.