How to Determine an Asking Price When Selling Your Home
In a seller’s market, selling your home should be easy, but there are still plenty of mistakes to be made. One of the biggest struggles for sellers is how to determine the right asking price. You know that if you ask too much, you risk your home sitting unsold or your house not appraising for the purchase price, allowing the buyer to walk away. If you ask too little, you are leaving buyers wondering what is wrong with the house, or you are leaving money on the table. In a perfect world, your home will sell close to its appraised value. It’s important to let your real estate agent guide you to find the right asking price.
Take stock of the features of your home, including lot size, square footage, neighborhood, age of the home, and any upgrades. Look at comparable listings in your neighborhood. Generally speaking, this will let you know what buyers who are looking for a home like yours are willing to pay. Make sure you limit these listings to those that are in similar neighborhoods and with similar statistics. You may think that homes in your town should go for a certain amount, but different neighborhoods can price homes very differently.
Look for Recently Sold Homes
The active listings are a good starting point, but you need to get a sense of the market by seeing what has actually sold. Look at the listing prices as well as the final sale prices to see the ratios and compare homes that are similar to yours. Really focus on homes that could compare to yours and don’t get swayed by thinking your home is “close enough” to a home that recently sold for a premium. Be careful not to compare with the outliers and look for an average.
Pay Attention to Detail when Selling Your Home
Have you recently completed upgrades or is your home being sold with the original fixtures? Honestly assess your desirability. Identical homes from the outside may vary considerably depending on the details such as neighborhood, upgrades, curb appeal, and more. This is where your agent can help you determine which features allow for an increase in asking price, and which don’t. You may be thrilled with the upgrades you’ve done, but if that isn’t what current buyers are looking for, it may not make as big a difference as you had hoped.
Find the Sweet Spot
Your real estate agent can work with you and help you sift through all the data to determine the right asking price for your home. When your agent lets you know the asking price they recommend, trust their suggestions. While you may think that now is the time to get top dollar, your agent knows that buyers agents will see a home that is glaringly overpriced and look the other way. But your agent also knows how to get you the best possible price so you leave the transaction happy. Trust that your agent knows the market, knows your home, and knows the potential buyers and is committing to selling your house fast for the right price.
Pricing your home can be a challenge. In a seller’s market, it’s tempting to see what you can get, but be realistic and trust your agent to guide you to the right asking price that will help you sell your home fast. If you’re selling your home or thinking about listing your home, contact Amberwood Real Estate today!