Pricing Your Home to Sell
Many people mistakenly believe the value of their home will be determined by what sellers set the price of the home to be when finalizing the listing agreement. In fact, the market price of your property is determined by what a buyer is willing to pay for the property and whether or not the seller is willing to accept the buyer’s offer. Typically, a buyer will set a price they believe your property to be worth based on what other properties in the area sold for.
To find out what your house is worth, a comparable market analysis needs to be done that will allow sellers to price their property based on comparable sales in the area. The current market conditions in your area will determine the value of your home.
What to Consider When Pricing Your Home
There are several factors that can determine what the true market value of your home is. We recommend setting the price of your home according to brackets. If your home appears in multiple brackets, it’s likely to attract more buyers. For instance, a property that is priced at $199,000 will appear in the bracket for homes $100,000+. However, if you price your home at $200,000, it will appear in the $100,000+ bracket and $200,000+ bracket.
When pricing your home, make sure to consider homes similar to yours in size, age, and room count, as well as inventory in your nearby area. Keep an eye on what new construction is selling for in your area and where you fall pricewise according to the competition. Timing also plays an important role in determining the price of your home as the current real estate market will dictate your property value.
Arriving at Your List Price
We at Triangle Diamond Realty Group explain the pros and cons of listing at, above, or below our suggested list price. Every situation is different, and all factors must be taken into account.
You may want to list your home over market value if you must receive a certain dollar amount for your home, but keep in mind that you should expect to have very few lookers, if any, and the home will take longer to sell than other comparable homes. If you list your property over market value, there’s a chance the home will not appraise out by a buyer’s lender.
Setting your price at market value is more likely to result in potential buyers believing your home is fairly priced. This will make it easier for your home to be found in buyer searches and result in more buyers putting in offers. You’ll also likely have fewer issues with appraisal.
If you’re looking to have a quick sale and multiple offers, your best chance is to set the price of your home below market value. In fact, you may get offers higher than the list price in this case. A home listed below market value generates high interest levels in a strong real estate market. However, if the market is not as strong as you thought, you might be at risk of having to sell at a lower price.
Triangle Diamond Realty Group will discuss the pros and cons of listing your home at, above, or below market value. We will determine a suggested price for your property. This determination will be based on your specific situation and the current market in your area. We look at many different factors to help you arrive at your list price. Contact our experts today to help you determine what your home is worth.