Setting the right price for your home is important because it will either make or break your chance of a successful sale. Remember, your home could be perfect in and out but none of that matter if the price is not right. So how do you set the correct price for your home to sell?
There are several things to consider in pricing your home.
Property condition – Check your home’s major systems such as furnace, central air, electrical system, as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances. Better yet, hire a home inspector it would save you trouble when you already know what needs to be repaired before you even agree on a purchase price. Sometimes, home sellers find themselves asked to make costly repairs or price reduction after the home inspector checked the house that is already under contract. A pre-inspected house can be good as a marketing tool too.
Market condition – Is it moving up or down? The more you know about the condition of your local market, the better your chances of getting the best possible price for your home. The market value of your home is affected by the inventory of homes currently on the market, the demand or the number of people looking to buy property, mortgage rates, and the condition of the economy both local and national.
Inventory – check out your local market to see if the inventory is high or low. If it’s a hot market, when the demand is greater than supply, homes usually sell very quickly and may sell above asking price.
Interest rates – The interest rate has a major impact on home values. The demand for housing increases when rates are low or falling and vice versa.
Local competition – Check out the active competition in your area. Get comparable properties from your agent. Your agent can give you a general market analysis of your neighborhood to see if there are lots of comparable homes available in your area.
Location – The location of your home is a factor to consider too, if your property is located in a desirable neighborhood, chances are you may get your asking price or more.
Here are some reminders in setting the right price for your home:
Don’t start off with a high asking price. Thinking of starting off with a high asking price is not a good idea. For one, it will not help you sell, but will it help sell the competition. You will lose your potentials buyers and in the end you will just have to cut the asking price later, your prime market momentum (the first 21 days) lost.
Don’t price your home based on what you paid for it or what you need to buy for your next home.
Don’t rely in real estate sites to determine your home’s value.
Be realistic. Do not allow emotion to cloud your judgment and be realistic about setting the price of your home.
And don’t hesitate to consult your agent, the right agent is there to guide you, provide you information about the market, and help you make the most informed decision possible.