5 Steps to Setting the Best Price for Your Home

Posted by Steph Kaye on Sunday, June 26th, 2016 at 11:56am.

Remove Emotions from the Price Tag

Every homeowner wants the best possible price for their home when it comes time to sell.  However, many sellers struggle with understanding the true value of their home as it can be difficult to remove emotions from the price tag.  Furthermore, if you overprice your home thinking you can change it in the future in order to attract more buyers, you are sadly mistaken.  Your first price needs to be your final price, therefore it needs to be the best price.  Your experienced realtor will tell you that your home needs to be priced correctly at the beginning in order to get the best final sales price.  Lang Premier Properties presents five steps to setting the best possible price for you home in a competitive market.  

1. Market Research

The most important factors to consider when pricing your home are the conditions of the market.  You will need to review the past in order to predict your future.  Do your market research in order to see what homes and for how much have recently been sold. How does your home fit in with those which have sold?  Keep in mind that uninterested parties are not going to offer you top dollar for your home.  Home selling is comprised art, marketing, and science and you need to perform like a pro. KNOW your local market and if the prices are dropping, your will need to set a reasonable listing price.  If the market is on fire, then the opposite will be true.  

2. Review Comparables

Next, you will need to review 10-15 houses closely resembling your own which were sold in the last few months. Check out homes that have similar conditions in your neighborhood, compare them with your home, and consider their prices. Know what buyers in your area are looking for and make updates before you list.  Don't over or under price.  Visit current listings and learn what they have to offer, attend open houses, and know your competition.  If you run across a home which has been on the market for a while, find out why.  If it is due to price point, rethink your own price tag.  Don't use comparable beyond six months as the real estate market can change drastically even in half a year.

3. Don't Get "Funky" with Your Price

When it comes to home pricing, creativity is not a necessary asset.  Try to establish round numbers as your home price. Your creativtiy can be an asset when it comes time to stage your home, but don't get funky with the price tag.  It is your job to think like a buyer and honestly understand how much you'd be willing to pay for your house NOW..

4. Know Your Strategy

This is where you will need to call in a professional.  Pricing strategies require some "know-how" as they maximize profitability and increase buyer’s interest.  You  will need an experienced realtor to help you develop a pricing strategy for you property. A good agent will find the best price according to buyer’s performance and may even advise you to sell your home for offers above a specific figure. Regardless of your experience in the housing market, you may not understand the cons and pros for each strategy.

5. Calculations & Professionals

Almost every homeowner wants to save money by not hiring a realtor. While online calculators are a great tool to have a starting understanding of your home, they are only the start and their considerations are not specific to your home.  These calculators collect general information about the square footage of your home, number of rooms, beds, baths and few attributes regarding homes in your neighborhood. They don’t consider your individual home specifically and cannot know if it is near a school or too close to a highway. These are very important factors every buyer considers, which is why working with a good specialist is a good idea.

 

If you'd like to learn more, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.

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