Whether you’re new to the world of real estate or you’re an old hat when it comes to listing and selling homes, there’s one part of the process that’s always more challenging than you may expect: coming up with the listing price. It’s not a per square footage set point but a combination of the market trends in your neighborhoods, comps and what trendy features your home has that buyers desire. I hope to pass along some of my favorite tips to you. This way, the next time you find yourself unsure about pricing, you’ll have some information to fall back on.
Comparative Market Analysis
The first and most important thing I do when trying to price a home for sale is to run a comparative market analysis check. This means I’m looking at homes in the area that have been listed recently and are similar in size and amenities to the one I’m pricing. From there, I’ll narrow down my results to houses that didn’t sell, houses that are still for sale, and houses that have sold. This will help me figure out, respectively, what price is too high for the area, what price is competitive, and what price is successful. The last category is the most important, but all three can help me figure out a reasonable price for a new listing. I’ll usually go with something like an average that falls into this range in a reasonable way.
Current Market Conditions
If houses in the same area are not selling well, that may mean I’ll need to adjust the listing price a bit lower. On the other hand, if buyers are eager to grab up anything in the area, I can encourage the price to go a little higher. Good neighborhood amenities can make a difference, too, including shopping, dining, parks, playgrounds, and more. And of course, the condition of the actual street on which the home is located can make some changes in the price, too.
Additional Home Features
Last but not least, I’ll consider the home’s features or lack thereof to figure out what may be a good asking price. If the home has a garage or a lot of bedrooms, it may drive the price up a bit. However, if the home only has one bathroom, for example, the price may dip a little because this is often seen as a negative by many buyers. I’ll also see which features have been demanding more buyer attention in the area recently when I consider this part of the pricing process, too. Also, most home buyers love move in ready homes equipped with the latest design trends and luxury features. Tiled and wood floors are always preferred over carpeting; natural stone countertops, upgraded appliances, hardware and current kitchen cabinet trends will sell a home faster than a lower priced home with same floorplan in your neighborhood.
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