If you want to sell your home, determining how to price it and having the right asking price is essential. You need to establish the right amount for your property--not too high and not too low, because both could have adverse effects in you selling it.
Pricing your home too high could make your property sit too long on the market. The result: prospective buyers get suspicious when a house has been on the market for while, as they might think that there’s something with house.
Pricing below market value may stir interest and generate bids. However, it may backfire when buyers assume that your property is only worth its list price. The best thing to do is to know your home’s market value.
A property’s market value is the negotiated price between a buyer and a seller in a transaction, after marketing. It is not the current listing price nor the price of the most recent offer on the house.
How can you know your home’s market value? Here are some ways:
Consult a real estate agent
A real agent’s expertise, aside from helping people sell their homes, is to help them figure out the price of their homes. Agents do this through a comparative market analysis, which is done by finding similar properties, also called “comparables”, that sold within the past ninety days.
The most accurate comparables are recently-sold homes nearby and similar to yours in square footage and the same amount of bathrooms and bedrooms. Once the agent finds several recently sold comparables, they would average the prices and will use it as a standard for how much your home is worth. It can often be a good idea to get an appraisal from 3 separate agents so you have a stronger idea of your property’s value.
Consider buyer behavior.
Everything is online nowadays, including listings. Because of this, it has been easier for both sellers to sell their properties and for buyers to find homes that suit their tastes and budget. Sellers could use this in their advantage and observe how buyers look for houses, especially through the prices. Just like figuring out how much you could get for your car, jump online and search for your area, and take a look at what other homes are selling for.
Your home is a place where some of your life’s important moments happened, and those moments are priceless. While it’s hard to put a price tag on memories, you shouldn’t let personal attachment get in the way. The selling process is strictly a transaction, and whilst it can be difficult to ignore those memories, it’s purely about the numbers and the buyers right now.
Look out for market movements.
Check out the market’s temperature if it’s hot or cold. A hot market is when the demand of buyers is higher than the supply of properties, while a cold market is the opposite. Adjust your price accordingly, and ask your agent for guidance on this, as they would know the market’s temperature better than the average person. A final tip is to attend local auctions and open houses, and see what’s going on.
These tips can help you price your home for the amount it deserves. Through proper research, strategies, and advice from an agent, you can be sure that you could do the most out of this venture. If you need a hand in setting up the selling of your home, you can always message me or call me at 0405 000 219!
BEN WAKELY | 0405 000 219
Bardon Agent of the Year