The first step in selling your property is to have a general idea of the local residential real estate market. Home prices can differ from location to location, even within the same state. A three-bedroom bungalow or mansion upstate in the suburbs has an entirely different price point in comparison to a three-bedroom penthouse in a metropolis.
You don’t want to undersell or overprice your home regardless of the current market. You may hear from certain quarters that setting the price slightly above market price is the way to go in a seller’s market.
That’s not necessarily true. Demand for homes in a seller’s market may be higher than the supply, but buyers are also informed. They’re probably looking at the same comps (comparison factors that affect home value) that you are. So, instead of betting against a seller’s or buyer’ market, consider the following pointers instead:
A Competitive Price Point Is Crucial
You can’t afford to mess up the pricing of your home if you want eyeballs on the property as soon as you get the word out that the house is on the market. The quickest and probably the best way to do that is to run a comparative market analysis. The comparison relies on comps. It’s a side-by-side collation of homes similar to yours.
The critical information metrics are the listing prices of comparable homes in your location—both currently and over the past couple of months (6-12 months should suffice). It’s also important to note the average listing duration, the original listing price and the actual price at which the homes sold. With a snapshot of historical home prices, you can now work out an asking price and be confident that it’ll be a better offer to potential homebuyers in the area.
Borrow a Leaf From the Statistical Concept of Using Ranges
Using a price range gets you a pool of leads. It works almost similar to psychological pricing. Are you likely to buy a bag of potato chips that retails for $1.99 or one with a shelf price of $2.00?
Homebuyers tend to be naturally attracted to home prices that have intervals of between five to ten thousand dollars. A potential home buyer with a budget of, say, $399,000 would more likely than not be interested in looking at home properties marketed to range between $389,000 and $409,000. Price ranges make the prospect comfortable in believing that their budget can fit somewhere in-between the range.
The Negotiation Trick
Negotiations can be tricky, especially if you don’t have solid background comps information. Before you consider this approach to sell your house, use a home value estimator to do the relevant research. You can visit a local real estate association or hire a property valuer to get an unbiased opinion about the fair market value of the house.
Once you have the value, use the value marketing approach. It works best if you set a price ceiling—the highest price you would be willing to close a deal. And a price floor that you cannot compromise beyond.
Assume a buyer got wind that your home is on the market through a mutual friend. The buyer could be an agent looking to find a house for their client, a developer, or an impulse home buyer/flipper. The price ceiling represents what you would sell the house for if the client loves it and decides to close the deal on the spot.
You obviously can’t drop beyond your price floor: so let the negotiation games begin! Understanding your minimum and maximum price expectations gives you a strong position in negotiations, helping you stay firm on value while remaining open to offers. For more tips on mastering the art of negotiation, visit now and equip yourself with strategies that can lead to a successful and rewarding sale.
An Agent Will Get You Offers and Sell Your House a Lot Faster
Go through your state’s licensed listing agents directory or real estate agent on a credible agent database to get a real estate partner to help you sell the home. For a 6 percent commission, realtors stage your house and send potential buyers your way in no time. All you have to do is accept or refuse the price proposals fronted by the buyers’ side.
As industry experts, they have all the comps at the palm of their hands. They’re uniquely positioned to inject widespread industry knowledge and use their local real estate fine print to list and structure the best possible deal for you.
If you need a third-party pricing perspective from a professional, look no further. Agents can also help you out with home pre-inspections and upgrades as well as in preparing disclosure documents for such home modifications.
Selling your house doesn’t have to be a nightmare. All you need is workable pricing strategies and the right people in your corner. If you’re looking to close the deal independently, be sure to follow up on all leads and prospects promptly. And if you take the real estate route, secure yourself an above-average listing agreement and marketing plan.
