Setting a selling price for your home is a tough decision, but a very important one. My objectives are to sell your home in the least amount of time, with a minimum of inconvenience to you, at the best possible price and with the most favorable terms that I can garner in the current market. I'm sure you don’t want to ask too much and have your listing sit for ages without selling. Here are some tips for pricing your home so it sells fast, at a price you’ll be happy with:
If your asking price is too high, buyers won’t be interested, and your listing will just sit there and get stale. A listing that sits on the market for a long time makes people think there’s something wrong with the property. Selling a stale listing, even at a reduced price, becomes much more challenging, since most potential buyers have already seen it and have passed over it.
Dropping the price is never the best idea. It makes you look desperate to sell. It's better to have come up with a reasonable price right from the start.
Pricing your home too low can pose problems as well. In a hot market, a low price can actually spark multiple offers, which is great for you, because a bidding war will only drive up the price. But if there’s not enough interest, a lower price means you won’t make as much as you could have. It can also make potential buyers wonder what’s wrong with the home. In addition, it could also mean you end up missing a key demographic. For example, if the homes in your area are selling for $400,000-500,000, and you list your home at $350,000, then people who are looking in the original range won’t even see your listing.
Setting a fair price means you’ll get more interest, potentially attract multiple buyers, and sell your property faster. So how do you set the right price? There’s really no set formula; the key to selling is to list your house at a competitive market price - in other words, what people are willing to pay. To help you determine that price, consider the advice and recommendations of your REALTOR who will research the market and make an objective, detailed comparison of the homes of similar size, features and condition that have sold in the area.
Yes, this is the house in which you’ve raised your children, have restored lovingly, or landscaped beautifully. But potential buyers don’t care about your emotional attachment or the money you’ve invested in renos. What it’s worth to you isn’t the same as market value.
Selling prices are a good indication of what buyers are willing to pay for a home in your area. Just make sure you’re comparing apples to apples. A brand new home is going to command a different price than a 20-year old house or an historic property in the same neighborhood. The same goes for a condo overlooking the lake versus one in the same building that faces a highway.
Browse the MLS® to see what’s available in your neighbourhood and what prices are being asked. (Remember, though, that asking price doesn’t always translate into selling price, so take these numbers with a grain of salt.)
Find out about expired listings. These are properties that didn’t sell, and they’re a good way to get a sense of what buyers won’t pay for a home like yours.
Go view other homes that are for sale in your area. How do they compare with your home in terms of location, condition, features and size? Consider the asking price of those homes and use the information as one factor in determining the listing price for your home.
A registered valuer will do a detailed inspection of your home and local market and give you a professional assessment of how much it’s is worth. However, be wary of using the assessed value provided by your municipality. It may not be up to date, and it doesn’t factor in specific value items such as granite counter-tops, new kitchen cabinets, hardwood floors or an upgraded bathroom.
Your home’s value is based on supply and demand. Do some research on the market in your neighbourhood or city. Are homes in your area selling fast or sitting on the market for weeks or months? What are interest rates like? The economy? What about the local job market? All of those things factor in to what a buyer will want to spend to buy your property.
Most REALTORS® will do a Comparative Market Analysis (CMA) to show you what similar properties have sold for in your area. If you'd like a free, no-obligation CMA of your home and homes in your neighbourhood, or if you'd like to ask about recently sold or listed properties, please don't hesitate to contact me.
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