When it comes to selling a home, figuring out the right asking price is arguably one of the most important tasks to complete. Yet, despite how important this step is, many homeowners still continue to list their houses at the wrong price, and suffer the consequences in the long run.
While setting the listing price too high can increase the time it takes to sell a house, a listing price that’s too low may backfire during negotiating and could leave a seller shortchanged.
How to figure out your home’s value and set the right listing price
Of course, there are many different factors that affect a home’s value, and the process of setting a listing price will vary for each homeowner. There are, however, 5 universal tips that all homeowners can use to set the perfect listing price:
1. Research your local market
Of course, one of the biggest determining factors of your home’s value is the value of your neighbors’ homes. Research houses currently for sale near you, and look into homes that have recently sold in your area as well. Find out as much information as you can about homes that have sold in your neighborhood during the past 3 months. A local realtor can be an excellent resource for finding out more about homes in your neighborhood.
Aside from the purchase prices of recently sold houses near you, work with your realtor to find out how much these homes were initially listed for, to see how the local market responded. This information can help you to set your own expectations in terms of understanding how much buyers may be willing to pay for your home.
While selling prices of homes in your neighborhood are a good starting point, you must also be sure your asking price reflects your home’s unique features, including square footage, bedroom and bathroom count, and any unique features or amenities that make the home desirable. Make a list of your home’s desirable (and undesirable) features, and find out what houses with similar qualities have recently sold for in your neighborhood.
2. Have your home inspected
Many homeowners will skip this step, but completing a thorough inspection before listing a property can be hugely beneficial. Not only can this extra step help with determining the right listing price, but sellers who take the time to have their homes inspected and make any necessary repairs will have extra leverage when negotiating.
3. Keep your ideal buyer in mind
Your home’s unique selling features and amenities will undoubtedly appeal to a certain type of buyer. Figuring out who this buyer is and what their “profile” looks like could also help you understand how much your buyer will be willing to offer for your house.
Depending on what features appeal most to your buyer, you may be able to list your home at a higher price than the comps in your neighborhood, knowing that you have the advantage of offering desirable amenities.
Figuring out your ideal buyer’s priorities and budget may be a difficult task for a homeowner; a local real estate agent who’s familiar with the neighborhood and is well-versed in the demography of buyers in the area can help speed up the process.
4. Identify your home’s major selling points
Equally as important as finding the right buyer for your home is finding the right way to describe your home to interested buyers, especially if you’re listing online.
Make a list of all of the benefits your home has to offer, starting with the following:
- If you live in a quiet or private neighborhood, make sure to communicate this to buyers.
- Size of land
- This is especially important if your property extends beyond your backyard.
- Number of bedrooms and bathrooms
- Of course, this is standard information, but important nonetheless!
- Recent upgrades, additions, renovations, and unique amenities
- Features such as energy efficient appliances, smart heating and cooling, high-tech security systems, new flooring, and custom closet and storage space are all examples of selling features that must be communicated to interested buyers.
- A picturesque view alone can be a main selling feature for luxury property.
- Proximity to local places of interest
- Whether your home has easy access to transportation or a wide selection of local restaurants and entertainment, make sure buyers are aware of all the benefits your home’s address has to offer.
5. Work with a realtor you can trust
One of the best ways to ensure your listing price is set appropriately is to work with a realtor who knows the local market. Even more important, though, is finding a realtor you can trust.
The best realtor to work with when selling your home will focus on your needs, respect your time, and have experience working in your neighborhood. You’ll have a much quicker time researching comps when you work with the realtor who sold them, plus you’ll be able to gain more insight into the current home sales in your neighborhood.
Figuring out your home’s current value might take some research, but once you’ve done your homework, the selling process will be much less intimidating. For more information on figuring out your home’s value or if you have questions about selling your luxury home, contact me today!