Pricing your home may be the trickiest part of executing a successful sale. You know that if you price your house too low, you may sell ridiculously fast but lose a boat-load of money. However, if you price too high, you cause the house to sit on the market longer, experience multiple price breaks, and risk the potential of developing a nasty reputation of being unsalable. So how do you know what price tag to put on your house? Here are some things to think about when pricing your home for sale.
No Such Thing as Sentimental Value
You cannot sell your memories. Even if you set a price and another agreed to pay, there is no way to transfer the emotions you’ve experienced while living in that house. The sentiment isn’t what’s for sale, the structure is, so you’ve got to keep your heart out of the deal, keep your mind from going astray down memory lane, and keep focused on the business transaction at hand.
Return on Investment Does Not Apply
Unfortunately, you can’t just figure that you spent x amount, tack on a bit of interest, and sell the house for what you paid plus a profit. The real estate market fluctuates – it bends and flexes from one day to the next, so your house may be worth much more or far less right now than it was when you first bought the home.
Beware of the Illusion of Value
So we all know that trick of saying $2.99 instead of $3.00 because for some reason, that single penny creates the illusion of spending less than three dollars. When people search homes by prices, they usually search between two dollar amounts. For example, a buyer may be willing to spend as little as $200,000 and as much as $300,000. When the buyer enters that criteria into a search, they are not going to see homes priced at $199,999. You may have accidentally eliminated a group of buyers by trying to give the illusion of savings.
Free Home Valuation Calculators
There’s nothing wrong with instant gratification, especially when it comes to satisfying the curiosity of what your house might be worth. Online home valuation calculators offer free estimates based on data. These calculations lack the human factor and is far from accurate. There’s no reason you shouldn’t get a free home valuation estimate if you’re curious and have access to the internet, but use that number as a guide, not as a final answer as to the current fair market value of your home.
Listing Appraisal or Pre-Appraisal
A listing appraisal or pre-appraisal may help you garner a deeper understanding of what your home might be worth in today’s real estate market. The controversy over pre-appraisals is that they’re just opinions and hold no value to anyone other than the seller, although they cost hundreds of dollars to obtain. The buyer’s lender will require an appraisal during the process of the transaction, but a pre-appraisal will not suffice for that purpose. However, the listing appraisal can give you an idea of what your home is currently worth, but also ways that you might be able to increase the value of your home by investing in a few small minor repairs.
Your Real Estate Agent
Your real estate agent is your best source of information for gauging how to price your house to sell. Similar to what the appraiser does, the agent gathers public records information and also physically assesses the property. Your agent will provide you with a comprehensive market analysis, also known as a CMA, to understand the going rate of real estate in your area. Also like the appraiser, your agent can help you discover ways to improve the value of your home with things like improvements and staging.
There’s an art and a science to pricing a house to sell. Although you can take advantage of tools like home valuation calculators and listing appraisals, your agent might be your best bet for getting advice on how to price your home for sale. Keep your sentimental value and your personal investment out of the equation, but then price your house competitively based on other homes for sale in your area.
Your real estate agent is the best source of information about the local community and real estate topics. Give the Becky Meyer Group a call today at 402-960-9273 to learn more about local areas, discuss selling a house, or tour available homes for sale.