There’s both an art and science to pricing your house for sale. If your sales price misses its mark, you’re going to lose money and sell quickly, or the property could remain on the market long enough to damage its reputation and make it virtually unsellable, at least for the present moment. However, when you apply the tried and true tactics of strategic pricing, you can still expedite the sale, but maximize the profit and minimize stress all at the same time. Here are some things to consider about pricing your house for sale.
Understanding Sentimental Value
Pricing your house for sale cannot include emotional attachment or sentiment. Especially for homeowners who’ve lived in their homes for some years, memories and milestones become cherished treasures that feel as though they’re embedded in the walls of the property – but they’re not. They are, however, a permanent part of you and your life experience.
You cannot charge a stranger for the holiday memories you made fourteen years ago while precious loved ones were at your dining room table. Instead, that buyer wants to imagine the celebrations they’ll host as the homeowner.
Return on Investment
There is no guarantee you’ll earn from the sale of your house what you spent in its purchase. The real estate market is fluid, flexible, changing, and it flows in unpredictable directions. Not only does the quality of a property appreciate or depreciate over time, but so does the condition of the neighborhood in which it stands.
If you are determined to get back out of your house what you paid for your home, you may have a kink in your pricing strategy.
Ask your real estate agent to help you understand real estate property values and how the prices of houses changes with market trends.
Free Home Valuation Calculators
There’s an online tool known as the free home valuation calculator. While these free calculations satisfy instant gratification, quench the thirst of curiosity, and get the ball rolling in gauging what you think your house might be worth, they should not be used as a stand-alone resource for determining the price of your property. There’s no harm in getting the estimate since it’s free, but use it as a starting point, not an end-all to the topic.
Listing Appraisals | The Expert Opinion
One way to get an expert professional opinion regarding the value of your property is to obtain a listing appraisal or a pre-appraisal. When you hire a listing appraiser, he or she gathers public records information about your property such as the year it was built, the builder, size of the lot, size of the structure, etc. The appraiser also references a CMA, a Comprehensive Market Analysis that details recently sold homes in the area for comparison. Next, the appraiser physically assesses the property, taking note of weathering, deterioration, disrepair, and upgrades and enhancements. With all the information accumulated, the appraiser formulates an educated guess of what your house might be worth.
Your Real Estate Agent
The real estate agent you’ve chosen to work with is going to be your greatest asset in determining a sales price for your house. Your agent packs the same type of experience as the appraiser and has access to the same information. Furthermore, your agent has access to industry-specific knowledge and expertise that the appraiser lacks, making your agent’s judgment a more solid platform on which to stand. Furthermore, your agent has plenty to lose or gain from managing the transaction – and a thorough understanding of how poorly priced homes don’t sell.
Take a tour of the houses that are for sale in your area that align with yours in size and style. Imagine yourself as a buyer seeing these homes for the first time. Take note about what elements you found attractive and which were deterrents. Then, go home and compare your property to those you saw on your journey. How does your property stack up against the neighbors? If you were a buyer, which of those houses would hold the most value for you?
You can’t price a home based on emotion and sentiment. Instead, there are strategies you can apply that are proven to improve your chances of pricing your house efficiently so that it receives multiple offers from buyers.
Haftel Estates would be happy to show you homes, guide you through the offer process, and negotiate a sale. Feel free to contact us at 561.526.6990 for answers to your questions!