Determining the list price before selling your home is a critical step if you want a successful sale.
Pricing it too high can discourage potential buyers while pricing it too low means you might not get the best value for your property. In this post, our team at Your Home Sold Guaranteed Realty Elite - The Augustine Team will discuss the steps to determine your home’s list price.
Consider Online Valuation Tools
Online tools like HouseSigma home value estimator, can provide an estimate of your home’s value. However, these estimates can vary widely and tend to be inaccurate. For this reason, the best time to use them is when you’re early on in the home-selling process and only need a rough estimate of your home’s value.
Hire an Experienced Realtor
Once you’re committed to selling, you’ll need to hire a professional realtor. Experienced real estate agents have an in-depth understanding of the local market, and have special tools at their disposal to help them price your property to sell for the most money. They can also provide a comparative market analysis and suggest a competitive list price. A skilled realtor will also have connections to buyer’s agents in the area, enabling them to quickly match you with a pre-qualified buyer.
Conduct a Comparative Market Analysis (CMA)
A CMA involves analyzing recently sold and currently listed properties in your area that are similar to your home in terms of size, location, condition, and features. Based on this analysis, your realtor will determine a pricing strategy for your home– the initial list price as well as the minimum amount you’re willing to compromise on during negotiations. A CMA analysis will also give you a sense of the competition and the current market conditions.
Factor in Home Improvements
Assess any significant upgrades or renovations you’ve made to your property because these can justify a higher list price. However, be realistic about the market’s response to these renovations– not every improvement guarantees a dollar-for-dollar return on investment.
Account for Market Conditions
Be aware of the current market climate when setting your price. The real estate market can fluctuate due to factors like interest rates, supply and demand, and economic conditions. In a seller’s market, you may have more room to set a higher price, while in a buyer’s market, pricing competitively is crucial.
Be prepared to adjust your list price if your home doesn’t attract interest within a reasonable timeframe. Market dynamics can change, and it’s crucial to remain competitive.
Factor in Closing Costs and Negotiations
As a home seller, you will be responsible for the majority of closing costs as well as the commissions for both your realtor and the buyer’s agent. In addition, during negotiations buyers may expect you to cover some of their closing costs or negotiate on the price. When setting your list price, be sure to consider how these situations could affect your final profit.
List Price – What Is Your Strategy
Some sellers opt to price their homes slightly below market value to attract more buyers and potentially spark bidding wars. Others prefer pricing at or slightly above market value with room for negotiation.
No matter which route you go, be sure to avoid overpricing. An inflated price can deter buyers and result in your property lingering on the market or experiencing a price deduction. Be prepared to adapt your pricing based on market feedback.
We Can Help You Get Top Dollar For Your Home
Determining the right list price for your home is a critical decision that can significantly impact your selling experience. A well-researched and strategically priced home is more likely to attract potential buyers and lead to a successful sale.
If you need help setting a list price that will get you top dollar, be sure to work with Steve Augustine and our team at Your Home Sold Guaranteed Realty Elite - The Augustine Team. With nearly 20 years of experience in real estate, Steve is well-equipped to help you sell your house fast and maximize your profit.
Our in-depth understanding of the local housing market means we can price your home to sell fast and for top dollar. Plus, with our Guaranteed Sale Program and Get Your Home Ready Offer, you can sell risk-free.