Once you have decided to sell your home and move on, determining a fair price for the home can be a challenge. You have no doubt developed an emotional attachment to the home, and may have even put a considerable amount of money into upgrades. How can you look past these factors to determine a reasonable price? I’ve put together a few tips that will help you successfully price your home.
Understanding Market Pricing
The first step toward successfully pricing your home is understanding market pricing. Houses that are priced too high can languish on the market for months, or even years. The longer a home stays on the market, the greater the perception that something is wrong with the home becomes.
On the other hand, pricing your home too low can be seen as questionable. Real estate is a competitive market, and a home priced well below market average can be seen as a red flag for buyers.
Determining a fair price for the home will avoid these two extremes, and will give the home a better chance of attracting a buyer.
Compare Similar Prices
One easy way of determining a fair price is to look at homes that have sold in your area. Compare prices for homes that are similar in size and features, and look at what price they were listed at. There are many online resources to help you, and your realtor can also be an invaluable resource.
Consider Your Upgrades
If you have performed significant upgrades on your home, you can factor those in to your asking price. Major renovations like a remodeled kitchen or bath, new hardwood floors, and installing a finished basement are all major selling points. These upgrades add to the value of the home, and should influence the price.
Know the Market
The basic law of supply and demand definitely apply to the real estate market. If you live in a buyer’s market, with many homes for sale competing for attention, you may want to consider pricing your home competitively. On the other hand, a seller’s market means that you have more buyers vying for your home. Knowing the state of the current market will allow you to gauge your pricing accordingly.
Knowing what factors to consider will help you settle on an asking price that is right for your home. And as the #1 realtor in Encinitas, I can help you as well. I have a great deal of experience and knowledge about the market, and can use that experience to help you price your home for the best results.