If you’re thinking about selling your home soon, one of the most important decisions that you’ll need to make is your asking price when you list. There are a few factors that come into play when making this decision and your real estate agent is your best resource for navigating that unfamiliar terrain.
Your agent should be able to provide you with comparable recent sales in your area, more commonly referred to as “comps”. These comparative properties should be similar to your home in size, condition, updates, and amenities. Your agent will know which features make your home stand out from the crowd and will be able to take these into consideration when sizing up your home against other properties in the area.
Another factor to consider is the current state of the real estate market where you live. Market conditions take into account how much inventory is on the market, current interest rates, and the economy in general. If it’s a seller’s market in your area due to low inventory, you might be able to ask for a little more than if there is a glut of homes on the market. Buyers can’t afford to make lowball offers when there is a chance they’ll be rejected out of hand and another property might be hard to come by.
An appraisal is also a good way to determine your home’s value. A licensed Appraiser will be able to give a good sense of what your home is worth, taking into account its features and conditions. Appraisals are often expected by the buyer’s lender as a condition of extending financing, and if your home appraises for significantly less than your asking price, an offer could fall through.
Finally, one of your pricing considerations comes down to personal circumstances. If you are eager to sell quickly, you might be in the position of needing to price your home for less than if you didn’t have any pressing reason to move out. If it’s a quick sale you’re looking for, you’re not going to want to price your home too high in order to draw some immediate interest in the property.
All of these factors come together to contribute to your asking price. Depending on when and where you are selling, your personal situation, and the market and economy in general, the price you set should be the best price to attract a serious buyer. Price your home too high, and you risk having it languish on the market – and potentially necessitate a future price reduction. Price it too low, and you might cheat yourself out of a larger return.
Make sure to listen to your real estate agent’s advice. As a seller, you obviously want to sell your home for the greatest possible amount of money, but you probably aren’t the most objective party when it comes to determining value. After all, it is your house, where you’ve lived and made memories. You’ve loved it, and you probably think other people should, too. Your agent will have a little more distance, and therefore perspective, in the matter. Expect to discuss your asking price with your agent before you list your home for sale.