Making the decision to sell your home can be difficult to make, and it can be extremely emotional. Selling a home is also a process, there are steps to be followed and things that need to be done to ensure that your property is in the best condition possible for a sale and so you can get the highest price possible. That being said, pricing your home is a science, but many homeowners will set the price with their heart rather than following trends and market information. Before we jump into the proper way to find the perfect price for your home, let’s take a look at some of the biggest myths around home pricing, and how you can avoid them.
- If you price your home higher you will make more money:
While it is true that a higher price will make you more money, this isn’t always the case when it comes to pricing a home for sale. Listing your home for a price that is above market value could mean that it ends up siting on the market for a long period of time and make potential buyers wonder why it hasn’t sold, or if something is wrong with the property.
- Ignore the comps, if you think your home is worth more, then it is:
Homes carry sentimental value, and everyone believes that their house is worth more than their neighbors’. What it ultimately comes down to is comparing your property to other properties that are similar – do they have the same number of bathrooms and bedrooms, are they similar in size and age, etc. If a home on your street is absolutely identical to your own and has sold within the last three to six months, stay close to their sale price when pricing your home to sell.
- Follow the wise words of the internet, if Zillow says your price is worth X, then so it shall be:
There are so many home value estimators available online claiming to make it quick and easy to show you how much your home is worth at the click of a button. While this can be a fun activity to do, it’s best to get a professional home evaluation from an experienced real estate agent. Online estimators use automated valuation models to guess the value of your home based on location and other measurable factors, worst case scenario the estimate can set your expectations too high, which can make it difficult to accept a lower, more realistic listing price when you are ready to sell.
- Make sure to include the cost of any renovations and upgrades in the list price, dollar for dollar:
Surprising as it may seem, not every home renovation project carries a positive return on investment. There is also such a thing as over-remodeling – you don’t want to have the best house in the worst neighborhood, because you’ll never get that money back. Remodeling is tricky because the wrong project in the wrong market can cost you more time and money than it’s worst. Now, if you’re planning on living in your home forever then by all means the sky is the limit, make that house your dream home! But if you are considering possibly selling in the future it’s smart to meet with a real estate agent who can help you decide which projects will recoup the cost in the sale price.
- Never, ever take a price reduction:
Contrary to popular belief a price reduction is not always bad – some agents will encourage a small reduction of $1,000-$2,000 just to get buyer attention. If a buyer has looked at your home once a notification of a price reduction can encourage them to take another look.
- Be patient and wait as long as you need to for the right offer:
When your home is on the market, it’s easy to think that offers are too low, or the buyer isn’t the right one. However, if you keep waiting for the perfect buyer or offer then your house will never sell. And when a home sits on the market for too long it becomes stale and any activity will quickly come to a stop. As soon as you begin receiving offers sit down with your agent and discuss your next move.
- If you accept the first offer you get, then you priced your home too low:
A quick offer isn’t a bad thing, especially if it comes at full asking price – this just means the buyer really loves the property is prepared to be competitive in order to stand out. Don’t hesitate to accept the first offer, it could be the best one you get.
Now that we’ve gone over some of the most common myths around pricing your home, let’s take a look at our recommended 10 steps towards finding the perfect price for your home.
- Avoid Overpricing
One of the biggest mistakes you can make is to overprice your home. Buyers these days are very smart and have access to the same information that you do, so if they notice that your property is priced significantly higher than other homes in the area, they know that you’re trying to make more money than the house is worth. Additionally, if you were to get an offer at the list price, you’ll end up running into issues when the home appraisal reveals the true value of the property. The best way to sell your home for as much money as possible is to price it right. If your home is in good condition, located in a desirable location and priced appropriately, depending on market conditions, chances are that you’ll receive an offer above asking anyway as you’ll probably attract a number of potential buyers who will work hard to outbid one another in order to get the home.
- Hire an Appraiser
If you’re looking for a precise appraisal of your property, beyond the market analysis and comps prepared by your agent, then you will want to work with a certified and qualified appraiser who has experience in your market and neighborhood.
- Don’t Expect an Equal Return on Investment
People who invest a lot of time and money into remodeling expect to recoup their investment, and this isn’t always the case. While upgrades and a remodeled home are a big bonus, they’re more likely to attract a big group of interested buyers who will still prefer to pay the appraised value of the home based on local comps.
- Adjust the Price When Necessary
Once your home is on the market, you’ll quickly get an idea of whether it was priced well based on buyer reactions. If there are no showings, it means the price is too high, if there are lots of showings but zero offers it means it’s been marketed well but still overpriced. If some time has passed and you’re still struggling with no offers speak with your agent about adjusting the price.
- Follow the Comps
Comps take a look at other properties in your neighborhood that are similar or identical to your home and have sold in the last three to six months. If the highest sales price in your neighborhood is $300,000, then chances are that you won’t be able to achieve a higher sales price, unless your home really stands out. Typically, you can price your home higher than the comps in your area if it has something additional to offer, like more bedrooms or bathrooms, additional square footage, added features such as an attached garage or a finished basement, etc.
- Tap into Your Network
Friends, family and neighbors are a wonderful resource to consult with when listing your home for sale. You can even host a little open house so you can get some feedback from the people in your life to help guide your decision and how much you should list your home for.
- Offer Incentives
To encourage activity in a buyer’s market, many sellers will offer incentives like paying for inspections, helping with closing costs, taking on all repairs or providing allowances and credits for home upgrades after closing. This isn’t necessary, but if you absolutely need to sell your home quick, incentives can really give you a big push.
- Look Through Market Data
There’s nothing better than information, and you can gain a lot of insight by sifting through recent market data when looking to price your home perfectly. Take a look at expired and withdrawn listings – what did they do wrong? Explore pending and previous sales – what did they do right? Discuss this information with your agent so you can make an informed and intelligent decision about how to price your property.
- Curb Your Emotions
It’s hard to make a business decision about something that is near and dear to you. Emotions can make it difficult to have a realistic view of how much your home is worth, so try to receive advice with an open mind and be as objective as possible.
- Hire an Experienced Agent
It’s important to work with an experienced real estate agent who is local to your area and is strongly familiar with the market. If you are considering selling your Bryan-College Station home, please contact us so we can help you prepare your home for sale, price it well and assist through every step of the process. We look forward to working with you!