The most essential factor when selling your home is the price tag that you put on it. Every seller wants to bag the highest possible price for their house. However, the higher the price, the longer your home will remain on the market. And the longer it remains on the market, the less attractive it becomes to prospective buyers. If you price your house too far on the low end, you might be able to sell fast but will lose thousands of dollars.
Unlike the cost of a smartphone or a gallon of milk, a house’s price is hard to pin down. Every home is unique and, thus, should be priced differently. Pricing your house right to have it sell fast for the highest possible return on investment is both an art and science.
If you want to sell quickly for top dollar, here are a few things you should carefully consider when pricing your house.
1. Market Value Vs. Emotional Value
If you are like any other home seller, separating from the house you once called home might be difficult, especially if you have spent many years or decades there. The house might be the epitome of all your valuable memories, shared laughers and tears, achieved milestones, and holidays celebrated with your loved ones.
Hence, if you were to put an emotional value on your house, it would nearly be priceless. However, when selling your home, you have to keep the sentimental value aside and look at the market value — because potential buyers will not place a monetary value on your experiences, memories, or time. So, separate yourself from your current house and feel happy about your upcoming move.
Additionally, don’t calculate the pricing for your house based on what you paid for it. House values keep on changing with the market trends. So, your home might be worth more or less than it was when you purchased it.
2. The Condition of Your House for Sale
Buyers often look for a house that’s clean, crisp, and move-in-ready. If a potential buyer walks into your home only to find torn carpets, dingy fixtures, and stained walls, the chances are that they will begin calculating the cost for repairs they’ll have to make after purchasing your house.
Before bringing prospective buyers for a house tour, ensure that everything in your house is in good condition and functioning correctly. This includes checking that the water heaters, electrical, plumbing, heating and air systems, foundation, roof, etc., are working as they should.
If not now, these things will be investigated during inspection later during the closing phase. And if any problems are discovered during the inspection, you will have to either spend out-of-pocket funds to make the repairs or lower your price.
To avoid the hassle, you can take simple and inexpensive steps to improve the way your house looks, resulting in more perceived value to the property. For instance, you can replace the window screens or paint the windowsills, change out the light switch and electrical plate covers, polish the faucets and doorknobs, etc., which will give the buyers an impression of a house that’s new and well-cared for.
Additionally, consider de-cluttering, cleaning, and depersonalizing your house and making it look neutral with elements like lit candles, plants, etc., to make it easier for potential buyers to imagine their life there.
3. Aiming for A Much Higher Price
Sellers often want to sell their house at the highest possible price. However, setting a price that’s too high could have detrimental effects. A higher price could result in your home remaining on the market for longer, thereby making it less desirable for potential buyers who wonder about the reason your house might not be selling.
A real estate agent helps you determine the right price range within which your house will sell fast by outlining a window between the lowest and the highest price. While it isn’t ideal to start at the highest price, remember that the buyers will want to negotiate. So, set a price that gives you ample room to handle the negotiations.
Furthermore, don’t confuse the selling price with the asking price. The selling price is what the buyer pays after negotiations, whereas the asking price is the price tag you initially place on your property. Sometimes the gaps between these two numbers might be extremely thin, and other times it might be tremendously large.
4. Listing Your House to Bag The Most Money
When getting ready to price your house for sale, there are two things you must consider.
First, you should sell it in a seller’s market. A seller’s market is when there are fewer houses for sale in the market that there are buyers. This results in buyers competing for a single property and thereby generating multiple competitive offers. A seller’s market always gives you the upper hand.
On the other hand, there are more houses for sale during a buyer’s market and fewer people interested in buying. In a buyer’s market, there are higher chances of buyers negotiating for a lower price.
The second thing to consider is the season of the year when you should list your house. Typically, fewer house-hunting happens during mid-summer and mid-winter than in spring or autumn. So, to sell your home at a higher price, you might want to consider listing your property for sale during those seasons.
5. Finding the Right Real Estate Agent
Every day, real estate agents work with numerous buyers and sellers closely to understand their needs and finding them the right solution. They are also regularly exposed to the market trends, so they will be able to provide you deeper insights into what your home is worth. Additionally, they will offer you advice about ways to increase your property’s value, such as through minor fixture updates.
Consult with your agent to figure out the best time to list your house for sale, how you prepare the home for showings, and most importantly, how to price your house for sale.
Have Questions? Ask Pete Maver!
Your real estate agent is the best source of information about the local community and real estate topics. Give Pete Maver a call today at 248-705-2753 to learn more about local areas, discuss selling a house, or tour available homes for sale.