Real Estate Pricing Tips
For many, the thought of pricing real estate can be stressful. You may have an emotional attachment to your home or vacation property where you’ve made memories which makes it hard to be objective when looking into setting a fair price. Beyond any sentimentality, setting the right price for your home also has major financial implications.
When it comes time to sell real estate, there is a delicate balance to find the right price in order to attract buyers, while making sure you are not over or under-pricing your property. If you overprice your home, it may sit on the market as you miss out on potential buyers. If you underprice your home, you may be leaving money on the table.
How to find the “right” real estate price
When you are working with a professional, local realtor, it is their job (as the expert) to help you determine the right price for your property. That said, it is your home and you should have an idea of how much it is worth and/or what your pricing expectations are.
Here are my tips to help you set your expectations:
1 – Work with an experienced, local realtor
An experienced, local real estate agent will have industry expertise, a deep understanding of current market conditions, and local knowledge that is unique to the region where your property is located. This uniquely positions them to be able to have honest, and unbiased conversations with you about the home-selling process, how to position your home on the market, how to increase the value of your home, and what the fair market value of your home is.
2 – Do your research on your market
In order to set realistic expectations and be ready to discuss pricing with your realtor, you should also review any research they provide and/or do your own. Some questions to consider are – how many similar properties are currently on the market? What are the sales prices for comparable properties? How long did they take to sell?
Knowing more about comparable properties to yours will help you set realistic benchmarks. Your realtor can help you do this using their access to the local MLS platform.
3 – Understand the real estate market
Current real estate market conditions can have a large impact on your pricing strategy.
If you are in a seller’s market you may be able to price your home slightly higher to match high demand.
If you are in a buyer’s market, you may need to price your home slightly lower in order to increase interest in your home over other comparable properties.
4 – Remain objective
When selling your home, you will need to set your emotional attachment aside. Buyers don’t have the same memories or personal history with your home – what makes it so special to you, will be irrelevant in a buyer’s assessment of its value.
Your realtor’s impartial evaluation of market activity can be the most effective way to estimate your property’s selling price.
5 – Know that pricing is an ongoing process
Once your property hits the market, your pricing strategy is not over. Real estate markets are fluid. It is important to remain informed and have ongoing discussions with your Realtor. Markets can change quickly or unanticipated factors may come into play that will require you to make price adjustments.
–
When it comes to selling your home, the list price is as important as the condition of your home and its location. Work with a knowledgeable, local realtor to help ensure you don’t miss the mark and have a smooth selling process. I can be that realtor for you – just give me a call, send me a text or email.
