Perhaps the hardest task involved in selling a home is pricing the property right. However, there are some strategies you might want to consider in formulating your asking price.
First of all, you need in-depth evaluation of your home. Calculate its value basing on its physical attributes and the price you paid when you bought it. On the other hand, you have to be very objective in assessing its worth. Do not over nor underestimate the furnishings, landscaping and other improvements you have done for the property. Despite all the enhancements in it, you could not simply add every cost into the selling price. Otherwise, buyers would be easily thrown off by your expensive listing price. If you are thinking buyers would be easily interested in your home if it is priced too low, you are wrong. Buyers would actually be unimpressed. They might think that there are many attached liabilities to the property. So find the right balanced price so you could profit at the end of the deal.
Using comparative market analysis (CMA) would be beneficial in making up your selling price. This report would give you an overview of the prices of on-the-market homes. You could also see how long these stayed on the market before getting sold. If you are doing the CMA on your own, be sure that you could completely understand the market trends and patterns. It would also be an advantage for you if you evaluate what type of market is currently prevailing in your local area. Is it a buyer’s or seller’s market? The former is when there is an overflow of supply over demand, wherein there are more sellers than buyers. Thus, lower prices could be expected. The latter refers to the situation wherein there are more buyers than sellers. This is when you could safely promote your home for a higher price.
As you go along your research, you could visit other open houses. Once again, be very objective in comparing your home to other properties. You should compare your home against the location, size and accessibility to facilities of the other properties. If you see that your home surpassed all or most of the other homes’ qualities, then be confident enough to decide on a higher asking price. Conversely, if your home is in less favorable status, then learn from what the other homeowners did to improve their respective homes.
Another self-help measure to guide your home pricing is through using an online estimation tool. This is available via the National Association of Homebuilders (NAHB) site. This tool would present the average home price per location and the factors affecting such price. You would then be given the chance to see how other properties alike yours are priced.
However, simply knowing some details about the market may still not be enough. You could also seek help from licensed real estate agents to perform the CMAs. Having an appraisal done by a professional would also be helpful. A formal appraisal is dubbed as the most accurate technique to establish the value of a home. You could also use the guidance from these professionals as their experiences in handling various transactions would contribute to better judgment of a property. They could advice you how to create an irresistible offer for buyers. Then again, you must still trust your own instincts by taking part in deciding on the final selling price.
In pricing your home, you need to be realistic. You constantly need to be aware of the market. And lastly, do not be afraid to seek advice from professionals. These three main guides would make your home selling endeavor a rather profitable one.