Tips on Pricing Your Home

By | November 19, 2013

In buyers’ market pricing a home is tough to the seller. But with the right research you can improve your odds. The following tips will help you price properly for your home when you are selling.

  • Abandon your personal point of view: The buyers only look for how much value it does in their point of view. But they do not consider about any other. Those include your care paid for the home, memorable moments with your family, cash down payment for the next home, or your spending of time and money on lush landscaping, fresh paint, hardwood floors or other improvements.
  • Recognize that housing markets are local: Home prices vary based on the location. Price range and the neighborhood will affect the demand. You need to know the demand in your area for the house like you. Study the prices for those houses for different periods. Periods a year ago, six months ago, three months ago and the current are useful. Check the trends, prices variations up or down and how much. Number of days a home staying in the market, check if there is any seasonal like spring or summer moments. Compare the listing and selling prices of the houses, because most houses sell at price five percent less than the list price. Find the best agent in your area.
  • Market research: Do some market research on competition for your home, interested buyers who are going to sell property, is your property in a growing market with people coming in, that area does not attract new residents, new houses in your area competing with you or your house is newer than the other houses.
  • Know what your house is worth: Know the worth of your house by talking with a handful of agents. Appraisers will give appraisal, get it from a certified professional appraiser and look at houses that are comparable. It will give you a good idea that what your home currently worth.
  • Take help from professionals: When you meet the real estate agents, know about the price range and the market conditions in your area. Ask about the demand and supply in your area. If the demand is less than the supply find out how much they priced your home.

If the supply in the market is lower than the demand and the prices are going down, use strategic pricing techniques. If the prices are going down one percent each year, put your house for sale by cutting three percent of price. It will help you move quickly. If you want to sell your house by your own effort, reduce part of price for commission. Generally, the commission demanding by the agents are around six percent. If you reduce half in that commission that is three percent, the buyers feel it is a discount.