Anna Messina's Blog
For home sellers, it may be easy to fall into the trap of overpricing your property. And if you're not careful, you may encounter a number of price-related problems, including:
1. Homebuyers will shy away from your house.
Homebuyers want to find high-quality and affordable residences that they can enjoy for years to come. However, if you overprice your house, you risk alienating large groups of homebuyers instantly.
Price represents a key factor for homebuyers, and as such, you'll want to offer a price that matches homebuyers' expectations and budgets. If you assess the real estate market closely, you should have no trouble establishing a fair price for your home.
For example, home sellers can compare and contrast their houses with residences that currently are listed on the housing market. By doing so, home sellers can evaluate the prices of comparable houses and set prices for their houses based on the current real estate market's conditions.
2. Your home may remain on the real estate market for an extended period of time.
Overpriced homes frequently take longer to sell than other residences. This means your house may linger on the real estate market for months, weeks or years if you fail to price it appropriately.
When it comes to pricing your home, you'll want to make a great first impression on homebuyers. Ultimately, if you establish a fair price from the get-go, you can accelerate the home selling process.
It also is important to note that homebuyers frequently can sense desperation. And the longer your home remains on the market, the more likely it becomes that a homebuyer may assume that a home seller is desperate to get rid of a property. Thus, you might wind up receiving offers far below your initial expectations if you overprice your house.
On the other hand, if you price your house aggressively, you can boost your chances of generating plenty of interest in your residence and receiving multiple offers that meet or exceed your expectations.
3. Your home will be difficult to promote.
There are many great features that help you home stand apart from others. Conversely, an above-average price will hurt your chances to differentiate your home in any real estate market and detract from your real estate agent's ability to promote your house.
For home sellers, it is crucial to listen to your real estate agent. This professional understands what it takes to promote a house and will be able to offer pricing recommendations based on the current housing market. Furthermore, your real estate agent has your best interests in mind and will do everything possible to help you optimize the value of your house.
Work with an experienced real estate agent to ensure you can determine the ideal price for your home – you'll be glad you did. With a real estate agent at your side, you can set a fair price for your residence and move one step closer to selling your residence.
As you get ready to add your house to the real estate market, you likely will consider high and low initial asking prices. However, it is important to remember that no two residences are exactly alike. And much in the same vein, the initial asking price for your home may vary from that of a similar residence based on your house's condition, age and other factors.
Ultimately, a diligent home seller will allocate the necessary time and resources to determine a competitive initial asking price for his or her residence. This seller will be able to establish an initial home asking price that hits the mark with buyers, and as a result, stir up plenty of interest in his or her house.
Determining the ideal initial home asking price may seem tough at first. Fortunately, we're here to help you set a competitive price for your residence, regardless of the current housing market's conditions.
Now, let's take a look at three tips to help you establish the ideal initial asking price for your residence.
1. Assess Your Home
The present condition of your house may have a major impact on its value. Thus, you should perform a home inspection before you list your house to identify any underlying problems and address such issues.
A home inspection is generally requested by a buyer after a seller accepts an offer on a residence. Conversely, a seller who wants to go above and beyond the call of duty may perform an inspection to take a proactive approach to home improvement projects. This approach may help a seller mitigate potential home problems before they are discovered later in the home selling process.
Thanks to a home inspection, a seller can establish home improvement priorities. Then, this seller can perform myriad home improvements and move closer to maximizing the value of his or her residence.
2. Evaluate the Housing Market
Operating in a seller's market is far different from selling a house in a buyer's market. If you review the real estate market, you can gain the insights you need to establish a competitive price for your home.
Take a look at the prices of houses in your area that are similar to your own residence. This information will enable you to understand the price range for comparable houses in your city or town.
Also, evaluate the prices of recently sold residences in your area. This housing sector data will allow you to determine whether you are operating in a buyer's or seller's market.
3. Collaborate with a Real Estate Agent
A real estate agent knows the ins and outs of selling a home in any housing market. He or she can offer a wide assortment of housing market data. Perhaps most important, a real estate agent will make it simple for you to establish a competitive price for your residence and reap the benefits of a fast, profitable home selling experience.
Want to add your house to the real estate market? Use the aforementioned tips, and you should have no trouble setting a competitive initial asking price for your house.