Articles and Advice

How To Price Your Home

Not sure what your home's worth, or better yet, what people will pay for it? Here's how you can find out.

When listing your home, you want to do everything you can to maximize your sale price. However, when it comes to setting a figure, finding the sweet spot is vital. You don't want to leave money on the table, yet setting the high price tag can number of buyers and ultimately keep your house sitting on the market for far too long.

As a result, the best strategy is to use available facts and figures to come up with an asking price that can be supported by real data. Below are some important factors to consider when setting your sale price:

Look At Comps
Here is where it can pay off to be a nosey neighbor. Nearby real estate transactions involving similar properties within a small radius of your home can serve as a great proxy for setting your own asking price. In fact, buyer's agents will pull comp reports, short for "comparables", to get a sense of the market on a hyper-local level. Your listing agent can also provide comp reports to help you set a reasonable asking price. If your neighbor's home sold for a good price, you can easily use it as leverage.
Learn From Other's Mistakes
While you're looking at the local real estate market, pay special attention to homes that are either expired (meaning they didn't sell) or withdrawn (meaning the seller is no longer listing it). Take a look at the home itself, the asking price, and whether or not the seller dropped the price while the listing was active. This can give you a good indication on what the market is willing to pay.
Factor In Recent Upgrades
If you invested in significant upgrades prior to listing your home, such as new floors, insulation, or appliances, you likely will want to see a return on your investment. Work with your real estate agent to help price the expense of recent renovations and upgrades into your asking figure, so you can maximize your return as much as possible.
Consider The State Of The Market
The state of the market also plays an essential role in setting your sale price. If there is low inventory, low interest rates, and high buyer demand, you stand a good chance to maximize your profits. Just keep in mind, in many cases, buyers still aren't going to pay significantly more than what the property is actually worth; however, a hot seller's market does give you negotiating leverage on many things, including contingencies.

Nearby real estate transactions, the state of the market, and the expertise of your real estate agent are all important tools when it comes to setting the right asking price. Use a combination of all three to ensure your listing is set up for success.

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How To Price Your Home

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