| Pricing Strategies to Help You Sell Your Home
Selling your home can be a challenging task, and pricing strategies are a critical component of the process. To market your house competitively, you need to set a price based on the facts using tangible factors. Here are some pricing strategies that can help you sell your home.
Pricing is a balancing act
Setting an asking price for your home is pivotal in determining how long it will be on the market. You obviously want to achieve the best possible price, but pricing your home too high may reduce the number of interested buyers. This may cause your home to sit on the market too long, which may create the perception that there’s something wrong with it. On the other hand, pricing your home too low won’t achieve a great price and may create skepticism and raise unwanted questions about what may be wrong with it. So, finding the right balance is key.
Research the Comps
“Comparable Sales,” known as comps, are essential when determining the value of your home. You should research properties in your neighbourhood that are comparable to your property and have recently sold. Your agent may provide you with a Comparative Market Analysis (CMA) report to assist in valuing your home. It is important to compare with actual sold properties, not with list prices. Properties are only worth what people will pay for them, and comps must also be comparable to yours in position, age, condition, size, land, rooms, etc.
Don’t ignore Supply and Demand
Researching your local housing market and recent fluctuations is key to understanding supply and demand. Have prices been going up or down recently? In a seller’s market, properties will likely be somewhat overpriced, and in a buyer’s market, properties are often underpriced. Your real estate agent is the best person to advise you on this. Even in a seller’s market, properties may not be overpriced if the market is on the upswing and not near its peak. This brings you to the next question, whether to sell now or wait. Both your personal circumstances and where the housing market is within the cycle will dictate this decision.
Seasonal Housing Market Shifts
Different markets perform differently depending on the season. Make sure you look at which months are best for maximizing the sale price for your home.
Online Pricing Strategy
It is important to adjust your price to account for online pricing benchmarks. Once you have your home’s approximate value, you can then make small price adjustments that may boost a portal listing’s visibility. People regularly set pricing filters when searching on online property portals, so they only get to view homes that fall into that specific range. For example, if you list your home as $652,000, buyers who set their maximum price at $650,000 will never see your listing in their filtered search results. It is important that you trust your real estate agent to estimate the sweet spot listing price. Experience, a proven track record, and access to the right information will give them the knowledge to set the right price.
The goal is for the price to be compelling, not too low and not too high. It’s got to be just right to entice multiple offers. These pricing strategies can help you sell your home effectively and efficiently.
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