If you decided to sell your home, settling on an asking price can be a complicated issue. Pricing it too high might wind up leaving you with limited offers while asking for too little could ultimately result in low offers.
Follow these tips to help you decide on your final asking price:
Hire a pro
Hiring someone who is familiar with the industry will help ensure the process goes smoothly. They know how to market a home, negotiate prices and ensure you wind up walking away with the most money possible. One reason in particular that makes hiring a real estate agent valuable is his or her access to comparables or comps, according to Zillow, an online real estate company. By looking over these, professionals can observe the asking and selling prices of similar homes in the area. This helps immensely when trying to decide what to list your home as.
Typically, you want to price your home within the 10 percent average selling value of homes nearby. Prospective buyers tend to look at a certain area when purchasing a home and they will compare the prices of available homes. Pricing your property within that average will ensure you capture the interest of a higher volume of individuals.
With the help of a professional real estate agent you can also do your homework ahead of time and have a better grasp of past sales and how your home might do if it's listed on the market.
Price slightly below market value
Because buyers and their representing agents will likely be familiar with the market value of homes in a neighborhood they are looking at, they will know when they spot a deal. Pricing a home just below its market value can encourage a higher number of individuals to become interested and decide to make an offer on your property, noted Realtor.com. In some instances this can even create a bidding war which will ultimately drive up the final purchase price of the home.
"If you price it just a hair under market, you get a buzz going," said Darcy Barrow, a co-owner of a high-end real estate business, according to Realtor.com. "Smart buyers who are advised well are usually coming in just a little over market."
According to HGTV.com, it is important that as a seller you do not list your home for more than its worth. Even if you think you have time to let the market change and potentially interest more buyers, no one wants to purchase a home that's too expensive. In addition, some buyers might look over your listed home and simply assume it is out of their price range even though it might have been if you lowered the listing price and negotiated the final offer.
You want to ensure there is enough room to negotiate as well. A buyer will want to take your price down and you might want to offer other alternatives, such as paying closing costs or paying for a new roof.
Consider the season
Zillow also noted certain seasons can impact the demand for housing. Spring is typically the best time of year to sell a home. More buyers are looking for homes and this can drive your property's value even higher.
Winter is the slowest selling season of all and if you decide to sell your home during these cold months, you will also need to adjust the budget to fit the demand and available inventory.
Know what is valued
It's important to be familiar with the features that buyers want to see in a home. This can help you as you decide to price your home. If you have an updated kitchen or newly renovated bathroom, this can add value to your home and you may be able to ask for more when you initially list the property. However, other features, such as a swimming pool, might actually decrease the amount you can ask for because buyers might see maintenance costs as an issue and might be less likely to make an offer unless the home is listed for a lower value.
Remember, nothing is perfect and a prospective buyer will likely find some sort of issue with your home. It's important to find a good listing price that will attract buyers and give you the best chance of winding up with the most money when you finally sell your home.
If you happen to have a specific amount you really want or need to get for your house, consider investing a little money in upgrades or staging your home to increase the asking price you can advertise. By improving the condition of your home you can better convince buyers your home is truly worth the amount you want for it.