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How to Price Your Home (Strategically)!

Deciding to sell your home is a big deal, and determining a sales price is the largest hurdle and according the National Association of Realtors (NAR) when selling by owner   If you’re asking yourself “How much should I sell my house for?” this guide will help you through the process.

All the information you will need to determine a price of your home is mostly public information.  With some research and some basic math, you can come up with a farily accurate sales price on your own.

Sure, there are easier ways to getting an estimate of your homes worth.  Sites like Zillow offer tools which makes it very easy.  The truth is that, often it can be misleading.  In fact, Zillow has been sued due to its Zestimate feature due to its inaccuracies. These sites are not an expert in your neighborhood as you are.  It doesn’t now that ¼ mile west, an entirely different neighborhood exists and shouldn’t be considered when determining the price of you home.  It’s a generic pricing tool that should only be used to get an estimate as its name suggests.

More accurate options usually have a cost.  Appraisals which are conducted by licensed appraisers are the best way to go.  Appraisals do come with a cost.  Appraisals can range from 200-500.

If you’re working with a real estate agent, they’ll be providing you with a CMA, which is a compilation of recent sales from your area. It takes into consideration home details, days on the market, and final sale price.

With Premier Flat Fee, we want you to sell quickly so we are offering you a complimentary comparable market analysis (cma).

Tips:

Knowing the market

In Economics 101, we were taught the basics of supply and demand, and it definitely applies to real estate. Supply and demand in real estate will determine whether we have a sellers market, buyers market or a neutral market.  Understanding this will help with pricing and helps with dealing with offers.

Pricing Strategy:

You wouldn’t know it from a trip to the grocery store or a stroll through the mall, though. Indeed, many studies have shown that odd prices—especially those ending in the number nine—are far more common than round numbers, which end in zero, in marketplaces around the world. That’s because consumers generally prefer to pay less for products, and often associate prices ending in a nine with discounts or bargains. The idea is that $9.99 sounds like a better deal than $10.00.  For whatever reason, your $299,999 home might seem more approachable than if it were priced at $300,000.

 Price for online search ranges

Consider how buyers search for homes online or how their real estate agent searches the MLS for them.  They input their minimum value as well as the max value into their program.  Any homes outside those values will not show on the results.  Let’s say most of the homes in your neighborhood is selling under $300,000 so most buyers looking for homes in your neighborhood will most likely set their max search value at 300.000.  If you home is priced above 300,000 then it most likely will not be viewed by most of the potential buyers for your neighborhood.

Learn from other sellers’ mistakes

Review sold listings from your area to gain insights on pricing your home to sell. Compare original list prices of recently sold homes with their final sale prices. Did it take many price cuts to get a sale? Perhaps it was overpriced to begin with?

Don’t hesitate to cut the price after listing

Even with the best research, sometimes you’ll come to the conclusion that you’ve listed too high. Luckily, it’s not unusual to see price cuts. In fact, according to the Zillow Group Consumer Housing Trends Report, 60 percent of sellers change their price at least once. The key is to recognize quickly that you’ve overpriced, and make an accurate adjustment.

Avoid the temptation of making a few little pricing tweaks over time. Older listings simply aren’t as attractive to buyers, and your goal is to sell quickly. It’s always better to make one big price correction up.

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