As a seller, you want to get as much for your home as you can, but the objective is to sell your home.
There are a few things you should do before you even list your home on the market. As you read these tips, keep in mind that markets do change and you should be prepared to adjust the price on your home accordingly.
Consult With a Local Realtor
We want you to pay attention to the word “consult”, not hire. A local Realtor will be happy to provide you with comps and their opinion on what your home is worth. There may be a big gap between what you think your house is worth and what reality is. This is something you have to come to grips with before you even list your house.
Once you and your Realtor are on the same page as far as price is concerned, you should yourself go to a few open houses and do some comparisons. You’re naturally going to compare your home to the ones already on the market; this exercise gives you an honest perspective on what the current condition of the real estate market is in your area.
At this point you now know that the price your Realtor gave you was either realistic or not. A Realtor (listing agent) sometimes tends to over-inflate the initial list price just to get the listing. This can cause your house to go stale on a listing or worse yet scare away potential buyers.
In good times homeowners do upgrades to their homes and reap the benefit when they sell their home. In bad times, buyers don’t really care, and homeowners can lose money on upgrades and amenities.
This comes back to the kind of real estate market that exists when selling your home.
Kitchens, bathrooms, and family areas hold more value when it comes to valuing upgrades. Pools and Jacuzzis hold their value to a smaller market segment, and to some buyers amenities like this are actually a negative. They view these amenities as more upkeep and expenses, so keep this in mind when pricing your home.
Ultimately, the only way to know if you have priced you house fairly is to do it. If you see agents lining up outside your door to show your house, then you may have priced your house to low. And remember, you can adjust your list price at any time. If no one shows up to see your house, then that’s a very good sign you’ve overpriced your house – time to lower the price.
The market will tell you if you priced your house right. A good Realtor will have an even better pulse on the market, and we emphasize the word “good” because for reasons already mentioned, sometimes getting the listing is the priority – not proper pricing.
Also, remember, there’s always going to be some negotiations in the process. So, even if you don’t overprice your house, buyers will try to get a better deal – this is the way the game goes.