Setting the right asking price for your home is crucial to making the most out of your sale. Here we offer insider tips on why this is so important and how to set the right price.
Tips for Setting the Right Asking Price of Your Home
There are many considerations to be made when you decide to sell your home. People have different motivations for selling a home, and these motives can factor into determining the selling price.
Most people want to extract the maximum value from their home when selling. However, others are motivated to sell because they want out of the house and are, therefore, willing to sell the home at a discount. No matter what your reason for selling is, the following considerations will help you with the process.
Consideration 1: Asking Price vs. Selling Price
It is easy for many people to confuse the asking price and the selling price. Although these terms are somewhat self-explanatory, you must know the difference.
The asking price is the price of your home when it is listed. This amount is often slightly higher than the actual selling price.
Conversely, the selling price is what the buyer pays for the home. It’s highly likely that you will receive several offers below your asking price.
Once you get the offers, ultimately you must choose a buyer with whom you’re comfortable.
Your initial asking price will be negotiated several times between you and the potential buyer. Buyers will try to talk you down as much as possible until you let them know you’re not willing to go any lower.
Consideration 2: Determine Your Home’s Value
When the idea of selling your home enters your mind, it’s time to do a little research to determine your home’s value. Doing so will ensure you are listing your home at the market price which will attract buyers.
Much of the research can be done right in the comfort of your home. For instance, you can go online and search your county’s tax records to view your home’s tax assessment. If your county doesn’t have online files, then you may need to take a trip to the courthouse to find such records.
The tax appraised value is lower than your home’s actual market value, but this gives you an idea of what an appropriate selling price would be.
You should also research recent sales in your market, as well as homes that are currently for sale in your neighborhood. Utilizing these tools will ensure that you are not pricing your home too high or too low for your area.
Consideration 3: How Your Real Estate Agent Can Help
Don’t forget about your real estate agent. A good agent will help you determine the market price of your home.
They will provide you with a market analysis which will show you recent sales in your area. Your real estate agent can also find comparable sales and listings that are not available to you.
Your agent will walk through your home and point out problem areas. This is important because the first thing prospective buyers will do is find any fault and try to negotiate the price down. So, it is important to heed your agent’s advice if they see repairs that are needed. Now would be the time to take care of such repairs.
Your agent’s job is to help you get as much value for your home as possible.
Consideration 4: Set the Right Price from the Start
Pricing your home to sell right from the beginning is critical. If you price the house too high, you’re only going to prolong the search for a buyer. Of course, you don’t want to set the price too low and sell yourself short.
Your goals when selling your home is to get the most value from your home and to sell it within a reasonable period. To meet both of these goals, you must set the right price from the beginning. By doing so, you’ll avoid a lot of back and forth negotiating that is not only frustrating but time-consuming as well.
Listing your home at the right price means that you will likely have a large pool of buyers bringing you offers. Once you’re confident you’ve found a buyer that meets your requirements, you can then move on to further negotiations, if necessary.
Selling your home may feel like a complicated process, especially when it comes to pricing your home. Through your own research, and with the help of a competent real estate agent, you can price your home to sell. The correct pricing means your home won’t be sitting on the market for months or even years as some houses do. Your goal is to sell your property quickly so that you can move on with your life and into a new home.
Your real estate agent is the best source of information about the local community and real estate topics. Give the Nancy Kowalik Real Estate Group a call today at 856-478-6562 to learn more about local areas, discuss selling a house, or tour available homes for sale.