You’ve decided to sell your house. One of the most intimidating aspects to selling is determining the listing price, especially for those who have never sold a home before. But don’t worry; it doesn’t have to be hard. Conduct some basic research and follow these few tips.
Get an estimate
Make an estimation on your own, but don’t be afraid to ask or hire help. Spending a little extra money to get a solid number to start with is worth it. If you feel this is the route you need to go, check out a local appraiser.
Research the local market
After evaluating your property, compare it to those near it in terms of location, size, and schools. How are those homes priced? Is there a lot of interest? How quickly did each place sell? Know what is happening around the area. This can be done by looking online or in local newspapers. Check 10 to 15 houses to get the best idea of what is out there. With a sizable yet manageable collection, the worth of your property in that location will be more easily determined.
Find the right price range
Keep in mind the price parameters that buyers in a certain area look for online. While some people will rely completely on agents, more and more people are doing their own online searches initially. When conducting a search online often times potential buyers filter listings to the price range they are pre-approved or pre-qualified to purchase. If in the particular area you are trying to sell in has multiple homes in the $400,000 - $500,000, then many people will search properties that are <$500,000. When choosing a price, remember that in this scenario, if a listing were to be priced at $520,000 then the property wouldn’t pop up, even if it is exactly what the buyer is looking for. Take a look at popular website’s search criteria, especially price brackets.
Stick to rounded numbers.
Even though according to your tedious calculations the property is worth $476,983, a buyer is not going to want to take a look. That number is distracting. Budgets are usually rounded to an even number, whether meticulously planned or roughly estimated in their heads, so make it easy on them and keep it to $477,000-$470,000.
Always have a plan B.
If you genuinely believe your property is worth the extra $50,000 then start out asking for it. It’s your house, your call; however, if no one is interested eventually something has to be done to move forward in the selling process. Here comes plan B. Deciding on a plan B from the get-go is wise, because wasting time trying to hammer out all of the details could be detrimental to selling your home to the right buyer. Just because you plan for the worst doesn’t mean it will happen. Changing the asking price is not ideal, but it can ultimately get the property sold. Estimating a proper asking price to begin with and keep your expectations realistic will help you achieve plan A— selling your home sooner rather than later to the right buyer.