Over at Neighborly News, there is a terrific, new blog post discussing how to price your home to sell. Please click the link and read the post in its entirety— but to give you a taste of the information I’ll highlight the major points below.
1. Overpricing a home is risky. Largest exposure window for the home is first 2-4 weeks on the market. Overpricing can eliminate strongest prospective buyers for your home and may induce a negative feeling with buyers, and their agents, when the price is lowered weeks later.
2. An overpriced listing languishes on the market, costing you, the seller, in lost time (plans have to be put on hold) and money (mortgage, taxes, maintenance). Quality of life can be effected by having to maintain a “show-ready” home 24/7.
3. Working with a real estate professional nets sellers an average of $25,000 more per home sale than “For Sale By Owner” sales, according to a study done by National Association of REALTORS®.
4. Your real estate agent will do research for you to help determine the best price for your home in your neighborhood, including a Comparative Market Analysis (CMA). A CMA is a report analyzing comparable houses in the community that are currently for sale, that have recently sold and were listed for sale but did not sell. The CMA includes pertinent details about the comparable homes, including the number of bedrooms and baths, square footage and any special features. Included are the listing prices and sale prices for each comparable home in the report. The CMA also discusses the Days on Market (DOM) for each home– this is an important feature of the report. The DOM tells you the number of days it took to sell the home once it was listed.
5. Analyzing special features of your home, and comparing them to what are buyer hot buttons in your market, is another service your agent will give you. If your home contains some of the hot button features, that may affect how your home should be priced.
6. Current market conditions– the real estate professional you work with will explain what those conditions are for your local market. An analysis of the current market conditions for your locality should include the inventory of homes on the market, the rate homes are selling, if prices are trending up or down and what the current economic conditions are.
Setting your home’s list price is one of the most critical steps in the overall selling process. By working with a real estate agent, you will have access to your agent’s industry experience and market knowledge. Armed with these important tools, the achievement of your goals, and desired home sale outcome, have an increased chance of success.