Incorrectly price your home to sell and there may be consequences. Here’s how to price a home to sell.
Priced too high, and your home sits on the market too long or doesn’t sell at all. This may put you in a position to make a price reduction—which could turn off future customers. Priced too low and you’re leaving money on the table. It is important to make a realistic assessment of your home’s value.
Here are some ideas to keep in mind when trying to price a home to sell.
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Compare similar homes
Take a look at recent home sales in your neighborhood. You can look at websites that list home sales to pick 3 homes to compare. Then make a note of different features of the homes compared to yours. You may have a 2 car garage, but your neighbor’s home may have a 1 car garage. A Realtor can help you compare houses.
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Improvements
Certain improvements may increase the value of your home. It is worth your time to do a little research or ask your Realtor if that new flooring, kitchen remodel, or newly refinished basement should be taken into consideration when pricing your home.
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Fixed-Costs
You should also take into account the fixed costs of the property. What is the tax rate for the property? Will there be private mortgage Insurance? Are there homeowner’s association fees? These costs should be taken into consideration because they will add to the buyer’s fixed expenses.
Correct pricing is a major part of selling your home. Before you put it on the market make sure that you and your Realtor have set a realistic asking price. Be an informed seller, but if you are unsure, remember, your Realtor is there to help!