Wheatland Realty Agent Tony Tudisco discusses 6 important elements to consider when setting your asking price.
It can be a tricky balancing act when coming to a fair asking price for your home. Every seller wants to bring in the most money in the shortest amount of time – however, you want to be careful not to under-value your home. Remember you can certainly always adjust your price down but you cannot go back up later.
In my experience, I have found there are 6 ways to price your house to sell it quickly and for top dollar!
1) Stay Local.
Don’t compare yourself to someone else across town or to what you hear on the national news. Stay in your subdivision unless there are no sales comparable to your home. If that is the case, expand out to a one-mile radius but after that you need to be careful what you are choosing and why. The appraiser will use the same guidelines and what they say will make or break your deal. The worst thing you can do is over-price your home and chase the market. It rarely works out. You want to be set up in a position to have the most success!
2) Use High Quality, Current Sales Data.
Do not use data from a neighbor’s sale six months ago when there are others that have sold in the last three months. You can’t just skip over the more recent sales if they are comparable to your home. Also, you cannot use For Sale By Owner information. Data must be a part of the MLS for the appraisers to qualify it. Lastly, learn the difference between the impact of short sales, foreclosures or relocations in your local market.
3) Do Not Use Online Valuations.
Please do not price your home according to the online automatic estimates of your home’s value. You need a professional real estate agent or appraiser to see your home in person. No one should price a home without seeing it, period.
4) Realistically Consider Your Amenities.
It’s hard to emotionally detach from our homes but it is important to do so. If the home down the street with similar square footage sold for $350,000 but has an updated kitchen with granite, hardwood floors and stainless steel appliances, it will be worth more than yours if it doesn’t have the same. Carefully take inventory of the amenities in and around your home, but be sure to add and subtract realistically when determining price. Sellers often over value their upgrades based on their sweat equity or what it cost them to have the work done rather than what the market will bear.
5) Consider the Number Strategies.
Be aware that your list price puts you in different search brackets on the internet. For instance, buyers often think in terms of $25,000 increments i.e “I’m looking to buy a home $350,000 to $375,000 or possibly even $400,000”. So, you can choose to list at $350,000 to ensure you attract buyers in the range of $325k to $350k and also $350k to $375k. You could list at $349,900, for instance, but you may miss out on the $350+ buyers who often forget (and their agents might too) to search $1,000 below.
6) Price vs. Condition.
If you want to bring in top dollar and sell quickly – you must show like top dollar! The more loose ends you leave the more work for the buyer. Don’t give the buyer any negotiating power to nickel and dime you on negotiations or worse yet, not even bother making an offer. Put yourself and your agent in a position of power right from the start. Set your price in line with the condition of your home.
Bottom line is…
There are a number of key elements to consider when setting your asking price and it can be a bit of a balancing act. It pays to have an experienced professional in your corner!
If you are getting ready to put your house on the market, please contact us. We will give you our expert opinion based on your personal situation.
My best to you!
Your Cure for the Common Realtor,