Determining a List Price for Your Home!

Determining a List Price for Your Home!

It is understandably difficult to make business decisions about a home that holds precious memories. The single most important factor to consider when you’re selling a house is that you’ve priced it correctly. You must determine the absolute right list price in order to achieve the best sale price possible.

Price Against Comparable Sales in Your Neighborhood

No matter how attractive and polished your house, Buyers will be comparing its price with everything else on the market.

Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood. Your Realtor® can furnish data on sales figures for those comparable sales and analyze them with a Comparative Market Analysis (CMA) to help you come up with a suggested listing price. The decision about how much to ask, though, is always yours.

 

Factors considered in a Comparative Market Analysis (CMA):

  • The first factor that is taken into consideration is how much similar properties have sold for in your area in recent months. If your home has particularly unique characteristics and it is difficult to find recent sold data, it is important to consider how the market has shifted between now and then.
     
  • The second factor is similar properties that are currently listed on the market. This will show you what the competition you are up against looks like and if any minor updates will need to be done in order to make your home competitive on the market.
     
  • The third factor a CMA considers is your area’s expired listings. These are properties that didn’t sell, for one reason or another – usually asking price. It is important to analyze what went wrong and learn from their mistakes.

 

Once this information has been gathered a skilled Realtor® will be able to discuss with you specific characteristics each comparable property has and any adjustments that must be made. Here are some common characteristics that require adjustments to be made:

  • Property Location
  • Lot Size
  • Home Size (square footage)
  • Home Condition
  • Style of Home
  • Age of key components (roof, furnace, A/C unit, etc.)

 

Don't let Your Home Develop a Negative Stigma!

Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of Buyers and other Realtors®. They know that your home will not sit on the market for months on end until you become frustrated and may be willing to accept less than what your property is worth had it been priced properly from the start.

Buyers and their Realtors® are very aware of the length of time a home spends on the market. Often Buyers are reluctant to make an offer on a home that has been on the market for awhile thinking that there is something wrong with the home that will require a lot of work to fix.

 

Find a Balance Between Pricing Too High and Too Low

When setting a list price for your home, you should be aware of a Buyer’s frame of mind. Consider the following pricing factors:

  • If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your Realtor® to “Bring me any offer. Frankly, I’d take less” but compared to other houses for sale, your home simply looks too expensive to be considered.
     
  • If you price too low, you’ll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a Buyer who was willing to pay it.

Thinking of Selling? Contact Us today, we would love to provide you with the current market trends and develop a plan to get your home sold for the most money!


*Things Our Lawyers Require us to Say - Armstrong - Bentley & Associates is not a financial, tax, legal, insurance, or investment advisor, and this article is meant for informational purposes only.


Armstrong - Bentley & Associates | Royal LePage Binder Real Estate



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