Deciding on a sales price for your home can be quite a challenge. Aim too high, and you’ll waste the rush of excitement created by a new listing. Interested buyers may pass over your property in favor of competitively priced offerings. Set the bar too low, and you’ll delight bargain hunters even as you sacrifice thousands of dollars. If you want to hit the sweet spot that’s neither too high nor too low, don’t just plunge into the marketplace with your best guess. Instead, give some serious thought to your strategy and review tips for how to price your home effectively.
How to Price Your Home
According to The Close, just 35 percent of homes sold for between 95 and 99 percent of their listed price in 2018. Some sold for more than their asking price while others went for less, but there’s clearly a fair amount of wiggle room in home pricing. Although some might see it as frustrating, savvy sellers recognize this as an opportunity for strategizing. With a little thought, you can use your home’s price to stand out from other for-sale properties, attract the eyes of interested buyers, and secure a fair price for your residential property. In fact, understanding how to price your home for sale can help you connect with buyers quickly and sell faster with less stress. How do you do it?
Follow the Numbers Instead of Your Heart
Your home holds a special place in your heart. Even when you’re ready to move on, the emotional connection can be strong. Don’t let it cloud the issue of pricing. As MoneyTalksNews indicates, if you want to price your home right, it’s vital that you sideline your emotions in favor of the cold, hard facts. Focus on the numbers, and listen to professional advice with an open mind.
Whether you ask a real estate agent for a Comparative Market Analysis or do your own research, you’ll want to take a look at what similar properties in the surrounding area have sold for recently so that you can get an accurate sense of how buyers will likely value your home. As HGTV cautions, be careful not to mix past sales with active listings. The former reveal what homes have actually sold for. The latter tell you what your competition is asking. Active listings are handy to know, but unlike completed home sales, they don’t reveal what buyers are willing to pay.
Keep Your Market in Mind
Home prices vary by market, so pay close attention to your market. As Zillow reports, you’ll want to make sure that your price is especially attractive if you’re competing against other sellers in a buyer’s market. However, you may be able to set your price higher if buyers are scrambling to find available properties in a seller’s market.
Put Shopping Psychology to Work
The mind is a powerful thing, so why not use psychology to sway buyers? Consider the 99 strategy. Pricing a home just below a round number often makes buyers feel better about the bill. That’s why a seller who wants $200,000 will often price their home at $199,000. As Family Handyman points out, the desire to capitalize on herd mentality is another reason sellers opt to start with a competitively low price. Creating a situation where buyers feel like they are competing against other buyers for an in-demand home reinforces the sense of the property’s value. It may even spark a bidding war, which is sure to benefit the seller.
Price for Online Shoppers
You can shop for almost anything online today, and homes are no exception. With many buyers visiting real estate websites to peruse the offerings, it makes sense to price your home for online shopping. As Realtor.com explains, when contemplating how to price your home for internet shoppers, look at the price ranges frequently used by popular websites during searches. Then, make sure that the price you choose will give your home plenty of visibility among prospective buyers.
At PrimeLending of Kansas City, we want to help you achieve your housing goals. Whether you’re a first-time buyer, a veteran buyer searching for a new home that better suits your needs, or a homeowner interested in refinancing your current home, we can help you find the right loan product for your situation. Contact PrimeLending of Kansas City today.