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The best way to sell your home as it is is to usually work with a great agent who can help with pricing. That being said, most agents will lean on one or more of the most common ways of handling pricing a home to sell. Here are some of the thoughts on how to make the complex choice of where to set the price on your home for sale. Click here to know more details about Sell My House for Cash.
Draw on the Data
The biggest part of how people set prices is by looking at comps, or comparable properties that have recently sold. This is the bedrock of pricing, because it proves that other people were willing to pay a certain amount for a similar home recently and in a similar context. Of course, the market does change quickly, so sometimes the data isn’t perfect, but it has to be a starting point when pricing.
Aspire to a High Number If You’ve Got Time
For those who aren’t in a hurry to sell, it can sometimes work to start with a high price. In competitive seller’s markets, there may be people who want what you’re selling so badly that they’ll pay it, even offering to pay the difference if it doesn’t appraise or put down a cash offer.
Price Lower to Get a Bidding War
Another option is to price where you are comfortable that the home will appraise, and hope for a lot of interest. In particularly low-inventory markets, it can be to your advantage not to price the home too high, instead relying on the multiple offers to get you up to an excellent, high offer.
Stay In-Touch With What Buyers Are Seeing
If your buyers are flooded with options in the local market, or if your buyers are seeing similar properties that are much less well maintained, you need to factor that into your pricing strategy. In most cases, if a person is shopping for a primary residence, the amount of pressure they’re under to buy and the location where they need to be all impact the context under which they’ll evaluate your price. Make the price ‘make sense’ in your market.
Know What The Home Inspector Will Find
If you know the home inspector is likely to find expensive damage to the home, price so you have room to concede credits if needed to retain a buyer. While sellers don’t always have an obligation to make repairs or offer credits, being fairly aware of the state of the home helps you price with a smart eye to the rest of the under-contract process.
Remember Buyers Will Use Online Home Value Calculators
If you are dubious about online home value calculators that estimate what a home is worth, that’s fine, but those values are part of how your buyers will evaluate the home. Be sure that you understand why you’re pricing above or below the typical online home value calculators, so that if a potential buyer asks for an explanation of the discrepancy, you can explain what the algorithms cannot take into account.
