Pricing your home can be the single most important decision when you list your property. Here’s how to price your home correctly in competitive markets.
1. Avoid Overpricing
When you’re putting your home on the market, the initial presentation can make or break the deal. Setting the right price from the outset is crucial. An inflated price might cause potential buyers to balk at your offer or overlook your listing altogether.
Imagine you’ve set a mental selling price of $399,000 for your home but decide to test the waters by listing it at $415,000. A potential buyer with a budget cap of $400,000 will likely miss out on your listing due to online search parameters that cap at round numbers.
2. Steer Clear of Underpricing
Some sellers intentionally undervalue their homes, hoping to draw more interest or even initiate a bidding war. This can also be a common tactic for sellers who need a quick sale.
Unfortunately, undervaluing can be a double-edged sword. It might result in a significant loss for you. And some buyers may second guess the property, speculating about hidden defects.
3. Value Your Renovations Wisely
Did you splurge $50,000 on a state-of-the-art kitchen and a pool? It doesn’t mean your house’s price should increase by that exact amount. Although renovations can amplify your home’s appeal, expecting a full return on investment is unrealistic. Before going all-in on enhancements, analyze your neighborhood’s trends to gauge if specific upgrades will elevate property value.
4. Evaluate Comparable Sales
“Comps,” or comparable sales, refer to recent home sales that resemble yours in terms of dimensions, location and amenities. With this data, your real estate agent can provide a detailed comparative market analysis (CMA), guiding you to an optimal listing price.
A seasoned real estate agent can provide actionable inside data that can make it much easier for you to settle on a suitable price for your property.
5. Reassess If Necessary
Not getting the offers you hoped for? Collaborate with your agent and reevaluate your strategy.
Pricing: In a dynamic real estate landscape, sometimes adjusting the price becomes inevitable. Revisiting newer comps might offer clearer pricing insights.
Promotion: Ensure that your listing is error-free and well-advertised across all relevant platforms. Amplify visibility by hosting frequent open houses or showcasing virtual tours online.
Property Condition: Consult your agent about potential enhancements to add intrigue to your listing, from essential fixes to facade improvements that boost curb appeal.
One way to fund these types of upgrades is by taking advantage of the popular RealVitalize program. Once a seller signs up through an ERA® affiliated agent, the RealVitalize program covers the upfront costs for critical necessities, such as carpet cleaning/removal, handyman services, carpentry, drywall and insulation, electrical upgrades, painting, plumbing and junk hauling. The program even covers appliance purchasing and installation, as well as kitchen and bathroom upgrades, curb appeal enhancements and staging. When the home closes, funds are paid back from settlement proceeds without interest, markups or fees.
RealVitalize can be a renovation game-changer. It takes the headache out of staging and securing funding for key upgrades and repairs.
©2023 ERA Franchise Systems LLC (“ERA”). All Rights Reserved. ERA® and the ERA Logo are registered service marks owned by ERA. ERA supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. RealVitalize® and the REALVITALIZE and RV logos are registered service marks owned by Anywhere Real Estate Group LLC (“Anywhere”). The RealVitalize program is not available in all states and available only at participating offices. Void where prohibited. Terms and conditions apply. Execution of program agreement is required. Results not guaranteed. Seller must pay for work upon earlier of closing, listing no longer being in effect, or 12 months after completion of first job. If settlement proceeds are insufficient to cover the RealVitalize project costs, seller must pay the balance within 15 days after closing. All property enhancement services are provided by the applicable service provider affiliated with Angi, and are not provided by Anywhere, ERA or any of its affiliated companies. Not intended as a solicitation if your property is already listed by another broker.