3 Tips for Pricing Your Home to Sell
People sell for a variety of reasons, but one thing all sellers have in common is they want to sell their home fast and for top dollar. Pricing a home incorrectly is one of the biggest road blocks to achieving this goal. Here are three strategies to remember when working with your Realtor® to arrive at the perfect list price.
1. Remember that your home is now a product for sale
Every home tells a story of the people who live there. Whether it’s that one wall marked with the heights of your growing children, or the deck you built with your dad, it possesses a wealth of memories. For this reason, many sellers approach pricing their home through the eyes of its sentimental value and not its market value. The solution to this problem is embracing one key idea: your home is a product for sale and the market will dictate its price. This may feel like an unnatural way to think of your home, but this change in thinking is an essential first step. It’s like the difference between decorating and staging: you decorate a home you live in, but you stage a home you’re selling. This subtle but critical shift in the way you approach selling your home will result in a well-priced property that is poised to sell fast and for top dollar.
2. Observe current market conditions
If you’ve had selling on your mind for a while, it’s possible you’ve already had a Realtor® complete a home evaluation on your property to get a sense of its value. In a high-performing market like Simcoe County, market conditions can change weekly, so it’s critical to repeat this step when you’re actually ready to list. During a home evaluation, your Realtor® will arrive armed with important research that shows what similar homes are worth in your area and what they’ve sold for. This data, combined with other key factors like the condition of your home and its location, is what will turn your projected home value into a real-time list price. Throughout Simcoe County, inventory remains low, with some areas like Barrie sitting at just 1 month. That means that it would only take 30 days or less to sell all the homes currently listed for sale if nothing new came on the market. When demand outweighs supply, you have yourself a seller’s market, so while historical data is important, up-to-date market conditions will help you arrive at a price that reflects your home’s current value.
3. Set a confident list price
It’s so tempting to choose the Realtor® who suggests the highest list price, but however enticing it may be, there is a cost to overvaluing your property. When a Realtor® quotes you a suspiciously higher-than-expected list price, it’s called “buying the listing,” and often that same Realtor® will suggest a price reduction within weeks of going to market. Shooting higher than your home’s worth seems like a smart strategy to net more in the end, especially if you aren’t in a rush to sell. However, time and time again, the opposite turns out to be true: listings that are priced too high end up sitting on the market without viable offers. What’s worse is that typically the longer a listing sits on the market, the lower its perceived value becomes. Buyers may be keen, but they’re smart. A listing that doesn’t move often attaches a stigma to the home which can lower its value. Remember, your goal is to get the highest possible amount from the sale of your home, but choosing a Realtor® who prices your home competitively will save you thousands of dollars more in the end.
- Be prepared to discuss price regularly with your Realtor®. Being open and prepared to face changing market conditions will help you stay on track to get the best price for your home.
- Buyers that are looking for homes are typically looking up to a certain price point. We call those “glass ceilings.” If you list just above a glass ceiling, you’ll miss out on buyers looking just below.
- If you’ve overpriced your home, reducing the asking price in small intervals can help restore confidence in buyers who may be leery of considering your property.
- Do your research in picking a Realtor®. The more work you’ve done ahead of time, the easier it will be to entrust selling your home to the right professional who will get it sold fast and for top dollar.
While the information contained in this site has been presented with all due care, Faris Team assumes no responsibility or liability for any errors or omissions.