Top 5 Tips for Pricing Your Home Right

When it comes to pricing your house for sale, you might be tempted to set a price that includes your

principle investment and a hefty profit. However, this strategy rarely works for most of the homeowners. Nearly 40 percent of the homes listed in multiple listing services were not sold or expired in 2013. What was the primary reason behind this trend?

Overpriced Homes do not receive buyer’s attention.

Most of the homes that do not receive offers or viewings are overly priced. With the advance tools and internet, buyers are very well aware of the market prices and they prefer a house that offers best value for their money. Pricing your home is a combination of science as well as an art. If you are planning to sell your home at the right price, here are some excellent tips.

How to price your home right?

Comparative Market Analysis: Research your neighborhood for the houses that have been sold in the past few months. Find out the median price and consult a REALTOR® for the best selling price. You need to find out the average price of houses listed in the market because your house would have to compete with them. Ask your agents about the primary reasons for rejections and tips to eliminate those factors with minimal efforts. It is best to follow comparative analysis approach because an appraiser will do the same with your house.
Follow market trend: What is the current trend in your market? Is the market performing well or going down? You should consult professionals and understand the current market trend instead of chasing the market. For an instance, an overpriced house in a declining market becomes more undesirable with each passing day, whereas a seller under-pricing the house in an aggressive market may appear to be a fool today. You can use online tools to understand the current market trend in your area.
Consider the average on-market period: You need to do some online research and find out the average days on market. The average days signify the period of time that it takes for a house to be sold. Further, you need to consider the amount of time you have for closing the deal. If the average market days are 90 in your area and you have 30 days, it might better to start a lower price. It will help attract buyers and you will be able to close the deal quickly.
Consider pricing traps: The market is full of pricing traps and it is best to avoid them at first sight. One of the most common mistakes sellers make is to consider the tax value of the house as its current market value. However, the records used by taxing authorities are irrelevant to the market conditions. Similarly, do not consider insurance replacement cost as the market value of your house. Insurance replacement value suggests the amount it will take to rebuild the house.
Offer additional transaction perks: There are different types of buyers in the market including first-time homebuyers, who need some financial assistance in the process. Try to offer financial help including seller financing, it will help you attract buyers who are looking to stretch their financial resources. Further, you can offer lease option to help buyers with down payment. It is best to be flexible and working according to the buyer’s need is helpful closing the deal swiftly.