Deciding how much to ask for your home isn’t as easy as checking its approximate value on some of the popular real estate websites (get a quick online estimate HERE). Every seller wants to attain the best possible price and terms. But it’s not just location, location, location that determines the maximum amount for any home on the market.
Experienced real estate agents know that pricing a home appropriately from the start is critical to getting it sold quickly, and at the best price. Research from the National Association of REALTORS® shows that overpricing your home and then dropping the price several times while it sits on the market usually leads to selling it at a much lower price than what you originally should have asked for it. The longer a home is on the market, the deeper the discount is likely to be off the original price.
A real estate agent can help set the best price
A good real estate agent will know a neighborhood’s market conditions, the average days its homes are on the market, comparable sales prices, and other vital factors, which is why hiring a licensed real estate agent is usually your best choice for helping to set your home’s listing price.
Don’t be tempted to select a sales professional who suggests the highest price for your property. Instead, consider the agent who provides the best comparative market analysis and an explanation of how your home should be priced. That agent is more likely to sell your home quicker and for a higher price than one who tells you only what you want to hear.
Here are a few things a comparative market analysis should include:
- The sales prices for similar nearby homes sold in the past few months
- Listing prices for competing homes currently on the market
- Asking prices for homes taken off the market because they didn’t sell and, if available, why not
- How many days homes were on the market at various price points
- The average difference between the list prices and sale prices on homes that have sold
An experienced real estate agent will factor in all of these issues in the context of your local market conditions, including whether home prices are rising or falling, and whether it’s a buyer’s or seller’s market.
When you choose the right professional to help you with your home sale, and then listen to his or her advice, your transaction is more likely to come together quickly and smoothly from the very start.
Once your home is priced to sell, don't waste any time getting it ready for buyers.