Setting the List Price
When Selling Your Home
Your list price weighs heavily on how
easily you sell your home. If you price
your home too high, few buyers will take
the time to look at it. If the price is
too low, you may sell quickly but end up
getting less than you deserve. Although
you may think that pricing your home high
will give you more bargaining room, in
reality it often leads to fewer showings
and thus fewer offers.
To set a price for your
home, you need to understand the current
market conditions. At Southern
Living Real Estate, we
understand the market, and we’ll provide
you with a detailed market analysis and
the latest data available.
To get a sense of how
to price your home, put yourself in the
buyer’s shoes. Shop the competition. If
you were looking for a home, you would
probably want to know how its price
compared to comparable houses nearby.
These are called “comps,” and we’ll
provide you with information about how
much similar homes have sold for in your
area. We’ll let you know the asking prices
of other houses near yours, so you’ll have
a good idea of the competition. In
addition, we’ll consider the asking prices
of houses that have been on the market but
have not sold in the past few months.
This data is part of a “Comparative Market
Analysis” (CMA). Of course, condition,
amenities, and location of all comparable
homes should be taken into account.
With this information,
you should be able to set a price that
appears reasonable to buyers. Generally,
the listing price is one to three percent
above market value. Market value is the
price at which a particular house, in its
current condition, will sell within 30 to
90 days. Timing is an important element in
the equation, as is your home’s location
and condition.
If the CMA indicates a
price that you think is off, you may want
to consider getting an appraisal. A
professional licensed appraiser will come
to your home and make an objective
evaluation as to its market value.
Although hiring an appraiser is an
additional expense, it may serve you well
in determining the best price to ask for
your home.
When setting your
price, you need to be prepared to
negotiate. Be sure to establish your
priorities and discuss them with your
agent. Are you trying to sell quickly,
even if the price is a little lower than
you’d like? Or are you most concerned with
getting as high a price as possible?
Keep in mind that you
may not be able to sell your home right
away. Market conditions sometimes favor
the buyer, forcing you to make concessions
to get a faster sale. When we meet to
discuss your homes’ value, we’ll also
discuss market conditions. We’ll tell you
about other homes on the market, as well
as the average sale time in your
neighborhood. Although there’s no way to
predict the future, our analysis will help
you know what to expect. If you are not
comfortable with the average sale time, we
can explain ways you may be able to reduce
the time it takes to sell your home. You
can lower your asking price, improve your
home’s condition, or offer favorable terms
to buyers. Cash incentives sometimes work
as effectively as lowering the price. In
this case, you might offer to pay closing
costs or discount points or the buyer,
reducing the amount of cash they must
bring to the closing. Your agent can
explain these options to you.
In addition to the
housing market, the financing market can
impact how easily your home sells. When
interest rates are low, there are more
qualified buyers, making it easier to sell
your home. When interest rates are high,
the pool of buyers is smaller. When we’re
working with you to set your listing
price, we’ll discuss this also.
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