Pricing a home is the key to getting a home sold quickly, getting more exposure to the property, and receiving an offer as quickly as possible. Finding that sweet spot takes research, experience, and a seasoned agent but there are some things that homeowners can do or understand when it comes to pricing their property.
Consider the herd mentality.
Buyers don’t want to be the only one interested in a property so by pricing the home on the lower end of the scale you can stimulate more interest from buyers. If you are under the gun to sell fast, this is a great option.
Be creative when pricing a property.
If buyers are looking for a home under $400,000 and your home is priced at $410,000, a potential buyer may miss it even though they could be qualified for the higher price. Talk to your agent about the proper pricing so that you don’t miss certain buyers.
However, don’t get too creative.
Many agents will want to price the home at $488,878. But these oddly specific figures call attention to themselves for no good reason., It’s important to pick the right number without going crazy or overboard.
Talk to your agent about a pricing plan before you list.
Some homeowners may have high expectations about their properties interest and may ask for top dollar, so it’s important to talk about where your pricing should start, and when you should reduce it and to what amount before listing.
Never stop talking about pricing.
Pricing is really the key to getting your home sold so the strategy behind it needs to be something that you and your agent talk about a lot. This should not be a set it and forget it procedure.
Understand comparable properties.
The asking price of a property should be within 10% of the average sold price for your neighborhood. It’s important to look at home sales within the past three months, not just what’s currently on the market. What a home is listed at is not always what it will sell for and that’s the number you need to be aware of.
Don’t forget square footage.
Appraisals will look at the overall square footage and usable rooms to determine a home’s value, so look for homes that fall within 10-15% of the square footage of your own property.
Don’t neglect condition.
Appraisers will not only take a look at the size of the home and lot, but also the location, the condition of major features of the home such as furnace, plumbing, roof, and siding. All of these factors will determine the right value.
Know when to reduce the price
Not every home needs a reduction in price. By pricing it at market value or just under the closest competition is really the key to getting the most views on the home. Many homeowners feel that they can always price higher and drop if necessary, but this strategy can backfire, leaving the home on the market far too long discouraging buyers simply because of the days on market.
For more information about pricing your specific West Bloomfield, Farmington Hills, or Bloomfield Township home, contact me at 248-752-3088. I’d love to give you a free listing presentation of what your home is worth and how fast it could sell in today’s market.
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