Pricing your home properly is one of the most important and stressful aspects of selling your home. Take some of the guesswork out of your decision making with these four steps to consider when deciding how to price your home for sale.
Step 1: Keep A Level Head
Don’t fall for listing agents that propose outrageous home prices that are way above comparable homes in your area. Sure it sounds great at first, but no one wants their home to sit on the market for longer than it has to because of poor pricing.
If you were on the market for a new home, how much would you pay for your property? Try to look at your home from an objective point of view. How much could it be potentially worth in the next 5 – 10 years? Are there necessary repairs that are not yet taken care of? Approaching the situation from a buyer’s perspective will help you think realistically about how much your home is actually worth.
Step 2: Use A Professional
Get a professional analysis of comparable selling prices based on similar homes in your area that have sold in the last 6 months. Have your listing agent create a CMA, or Comparative Market Analysis for your home. A CMA is an evaluation of the final selling prices of properties with similar square footage in your area. Don’t trust the prices of homes you see still for sale or online “estimates”.
Step 3: Leave Your Emotions At The Door
A buyer doesn’t know the blood, sweat and tears you put into laying down a new hardwood floor, or how much time you’ve spent manicuring the lawn. Remember that buyers and their agents have a much more limited perspective on a property before they visit. Getting buyers in the door is the first and most important step to selling your home. Overpricing your home is decidedly not the best way to get them through the door.re forced to reduce the price again and again because of a lack of buyer interest
Step 4: Take note of the trends.
Now that you have your analysis in hand, its time to consider some of the intangibles. Are homes quickly turning over in your neighborhood? Has recent development sparked interest in your town? Are homes sitting for months with For Sale signs out front? If you have an experienced agent, they should be able to provide some valuable insight into the trends that can drive up (or drive down) the ultimate selling price of your property. Even the time of year your home goes on the market can be a deciding factor in the final selling price.
Step 5. Start a Bidding War (With Effective Pricing)
The listing price is not the end of the conversation. Consider the scenario: you’ve done your homework with your agent and after an evaluation of your home you’ve settled on a reasonable price that is just under some of the higher priced properties in your area. Instead of keeping interest away, your listing gets quickly shared to a number of potential buyers by their respective agents, in turn sparking their interest. You’ve avoided the Top Seller Mistakes and the first open house is full. Multiple buyers are able to see firsthand how great the neighborhood is, and can picture themselves enjoying your home for many years to come just as you have. With the increased interest, multiple offers come in.
Congratulations, you are now in the enviable position of having a bidding war for your home.
Now consider the opposite: You ignore your real estate agent’s advice and price your property way above comparable homes in the market. When the listing hits the MLS, agents advise their clients to stay away for now and wait for the price to come down. The open house has a few, somewhat interested buyers. With less interest, fewer offers come in. You stick with your price and your home sits on the market. Potential buyers see that the home has been on the market for sometime and some assume their must be something wrong with it if it is sitting for so long before even bothering to visit. After months (or years) on the market you finally accept the one offer that came in far below your asking price and in line with the comparable prices in your area.
You’ve just spent far longer showing your home, keeping it decluttered for prospective buyers, unnecessarily prolonged a stressful situation and wasted valuable time. Which scenario would you choose?
Contact one of our top real estate agents in New Jersey to help guide you through the process of selling your home. We are happy to help.
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