6 Tips to Accurately Price Your Home
Whenever any homeowner decides to sell a piece of real estate, determining the best asking price is always a bit risky. If you overprice the property, then the house can sit on the market for months without getting even a nibble. If you underprice the property, then you risk losing perhaps tens of thousands of dollars overnight. Here are six simple tips to determine the perfect asking price for any property.
1. Don't Use Zillow to Price Your Home
Zillow offers rather inaccurate "Zestimates" of the homes on their website. No one from Zillow ever visits your home, your subdivision, or even your state. They essentially rate the homeowners' listing prices as above or below market value based strictly on the general information found in public records, such as the number of bedrooms, bathrooms, square footage, and lot size. However, these public records may not tell the whole story about your home.
Did you recently increase the value to your property by adding a modern master suite or an updated kitchen with state-of-the art gourmet appliances? Then the list price should probably be much higher than the one found on Zillow. Or perhaps the home has fallen into a state of disrepair over the years. In this case, a more realistic listing price would be considerably lower than the Zillow Zestimate. If you want to price your home to sell, then you need accurate information, which Zillow does not provide.
2. Don't Overprice Your Home
The first listing price should be the best price. Too many homeowners make the mistake of overpricing their property. What usually happens is the home usually ends up staying on the market for far too long. Eventually, they end up reducing the sale price before relisting the property all over the web once again. By this time, the damage is done. By dropping the price, the homeowner is sending a signal to potential buyers that "something is wrong."
3. Don't Automatically Trust the Realtor With the Highest Listing Price
While aggressive sales tactics like these might sound very appealing, realtors who promise big bucks might be playing Russian roulette with your finances. Sure, a higher asking price means a higher commission for the real estate agent. But if they don't deliver, then the realtor is only out a few hundred dollars in marketing costs. The property owner, on the other hand, risks loses tens of thousands of dollars from a property listing that remains on the market for several months or even longer.
4. Look at Recently Sold Homes in Your Area
Realtors tend to refer to these recently sold homes as "comps." Check to see how many homes in your neighborhood are currently for sale, the absorption rate of your community, and the average listing prices for area properties with similar amenities.
5. Don't Price Your Home Based on What You Need
Basing the listing price on the remaining balance of the home's mortgage is never a good idea. When pricing your home to sell, the better option is to take a more logical approach while keeping your emotions out of the entire process. Property appraisals are a good first step to determine a home's true financial value based on the unique market and neighborhood.
6. Hire a Realtor
Selling a home requires the art of negotiation. And just because you like to argue and debate politics with your friends does not mean that you are a skillful negotiator. There are also a great number of tiny, line-item details involved with selling a property. Closing costs, legal documents, contract preparation, and perhaps promises to repair certain items before turning over the keys are all part of the process. "A man who is his own lawyer has a fool for a client." The same holds true in real estate.
Remember, when pricing your home to sell, first impressions are everything. You want to hit the perfect sweet-spot that is neither too high nor too low. Constantly lowering the asking price only sends the wrong message to prospective homebuyers. For the best results, always seek the advice and counsel of a HomesbyMarco agent. We have a longstanding positive reputation in the community.