We all understand and agree that home sellers want to sell their home as quickly as possible and for the highest possible price. In the negotiation process, one of the most important things is the “asking price” itself. Quite simple, if your home is priced too low, you are going to miss out on potential profit. If you set the price of your home too high, qualified buyers will look elsewhere for better deals.
Important factors that would help you determine the right price
There are several factors that can help you determine the right listing price and you should consider all of them before you decide about listing price.
What are homes in your area worth? Do research about the current market price of homes similar to yours in your area. Your agent should be able to help you determine average market price. Now, bear in mind that other sellers can ask whatever they want for their properties. These homes currently listed should be considered as your competition. You definitely need to ask yourself why a buyer would prefer your home over any other listed in the area and set your price accordingly.
Condition of the house is very important as much as square footage. Try your best to complete repairs that require minimal investment. There are many tricks to make your house look pretty and more valuable without large investments.
Ones you have the knowledge of how much is your home realistically worth based on previously mentioned factors, make sure you don’t under-price it. Buyers usually come to check the property and they expect to win the negotiation battle. Many times they believe that they are the only ones presenting you with an offer. Make sure to set the price a few percent higher than what you are hoping to sell it for, so that you leave some room for negotiation.
Determine market trend. Take unemployment rate into consideration as well as how many businesses have been opened and closed during the last twelve months. Take a look at how many properties went to foreclosure in the area. Check statistics on how many houses have been sold in comparison to the previous few years. All of this statistics, as well as your agent, would be able to help you determine if you are currently in a buyers or seller’s market, which is very important information in the process of setting up the right price.