When it comes to selling a home, nothing is more important than pricing it properly. Property condition, marketing, and even market conditions in general, all play second fiddle to ensuring that your price is right. Here are a few quick tips that can make all the difference when it comes to pricing and eventually realizing a sale.
1. When setting an initial price, only look at comparable properties that have sold in the last 6-12 months. This is the criteria an appraiser will use. And a bank will not make a loan on your property unless it appraises for the contract price or higher. This will help you determine the maximum price you can ask for your home.
2. Once you have set a maximum price that your home is likely to appraise, it’s time to evaluate your competition and adjustment the price to ensure that your home is competitive. If all of your neighbors are asking more for their homes, then no adjustment should be made. But if you have some stiff competition, you may have to lower your price a little to remain competitive.
3. Evaluate your price every 30 days or so and make adjustments if needed. Market trends can change quickly. If a handful of your neighbors sell at a discount, it will affect your home’s pricing as well…not to mention the appraisal stats used by the appraiser and lender to form an opinion for the loan.
4. Don’t get lost in the fray. Price your home in $5k/$10k increments, as most home search websites are built to support those increments for searching. This way your home will usually show up on the first page of those search results.