When pricing your home, you may consider the price you originally paid, add a substantial markup and presume you’re done. This would be a grave mistake; one that could wind up costing you thousands or end in no sale at all. In order to price your home to sell there are many things that should be considered: Obtain A Few CMA’s (Comparative Market Analysis): When interviewing agents, you should obtain CMA’s from each agent offering an idea of the price your home should sell. A CMA details the prices of similar homes recently sold, on-the-market homes as well as homes that simply did not sell in your area.
Be wary of agents attempting to “buy” your listing. An agent practicing this technique will often sweet-talk you with their elevated price recommendation waiting only a few weeks to insist on a price reduction. Be mindful: a home on the market for extended periods becomes less saleable. People begin to wonder if there are significant defects with the property or whether the seller is truly motivated.
Some agents suggest underpricing your home hoping to start bidding wars amongst hungry home buyers. While this technique may work to an extent in some markets, it is often a wiser decision to market your home at an appropriate price from day one. Calculate the Price per Square Foot The average square feet of homes in your area can be of considerable help in determining a proper listing price for your home. However, it is not recommended you rely on this tidbit of information solely. Evaluate Market Trends How quickly are homes selling in your area?
Are prices increasing or decreasing? Are you in prime selling season (typically during spring) or attempting to sell in the drooping winter season? How many offers are sellers typically receiving once on the market? These are only a few of the many questions that your agent can help answer. What Major or Minor Problems Exist Within Your Home?
