Once your home is prepared for sale, how do you decide on a price for your home? Without much knowledge of the real-estate world, coming up with a price for the home can seem like a very challenging task. After all, a home seller does not want to start with a price too high or a price too low because of the effect that can have on the entire selling process. The price a home seller chooses is crucial to having a positive or negative home selling process. Here are five tips to pricing your home correctly.
- Compare in your neighborhood. One of the easiest and best ways for you to know what price to sell your home is to look at the homes in your neighborhood. Find the homes that are similar to yours and figure out what price they sold for or are selling for. A realtor is going to be able to give you the information you need on homes selling in your neighborhood. They will provide you with the price the homes sold for and information regarding the style of the home. Without a realtor, it will be hard for you to determine both the price and whether or not homes in your neighborhood are actually similar to yours. In order to prevent awkward situations of you going inside a home to figure out the layout or having to ask your neighbor how much they paid for their home, ask a realtor. Some neighborhoods are going to have homes that are more expensive solely because of the neighborhood they are in. If the demand is high for living in your neighborhood, you will be able to sell your house at a higher price.
- Compare accurately. If the homes in your neighborhood are of a different standard than your home, look in a different neighborhood. Looking in your neighborhood is important, but it is just as important that the home you are comparing prices with is similar to yours. You will want the homes to have a similar style and layout. A home with four bedrooms and three bathrooms is going to sell for less than a home with six bedrooms and four bathrooms. The inside and outside of the home should be comparative, as a large yard with more square footage should also sell for more than one with less. Homes that have sold more recently are going to give you more accurate information than homes that were sold a few years ago.
- Know the history. To have a much more thorough understanding of how homes are selling in your area, look up the listing history of homes in your neighborhood. See what prices homes are originally put on the market for, how long they stay, and what the final price is. A realtor will have this type of information for you. You will want to follow in the footsteps of the individual who was able to sell their home for a worthy price in a short amount of time.
- Add the value of improvements. If you have renovated or remodeled your home, find out whether those improvements enable you to increase the price of your home. Renovations that are done in the kitchen, bathrooms, and flooring are most likely going to change the value of the home. Most likely, you will not be able to recoup the costs of your home improvements in the home selling process. Overpricing the value of the improvements you made is not going to help you. Make sure you know whether or not the improvements you made are renovations that enable you to increase the price of your home. Every homebuyer is going to value different aspects of the home. Therefore, the components of the home that you think are worth large sums of money could, to the next homeowner, seem like an insignificant part of the home.
- Know the current market. As with any buying and selling process, you need to be aware of the current market. There are times when there are plenty of sellers and not enough buyers, causing the price of homes to fall. While there are other seasons where there are fewer sellers and more buyers, enabling the cost of homes to increase. If you are aware of the market, you will know whether you should increase or decrease the cost solely based on the current supply and demand for homes. In Tacoma, the demand for homes is higher than the supply. This means that the prices for homes are expected to maintain or continue increasing throughout the year.
By following these five tips, you should be well equipped to sell your home at the right price. An important aspect of this entire process is finding the balance between a price too high and a price too low. If you price your house too high, you may face a number of negative effects including:
- Decreasing the number of people interested in your home.
- Having your home sit on the market for an extended amount of time, causing prospective homebuyers to question the state of your home: is there a problem with it?
- Prospective homebuyers thinking you are desperate to sell your home. This will cause more homebuyers to offer you low prices, lower than the worth of your home.
If you price your house too low, the negative effects you could experience include:
- Prospective homebuyers thinking that there is a problem with your home because you are selling it for such a low price.
- A decreased value of your home.
- Not receiving the amount you deserve for your home.
The right balance is going to have you selling your home at a price that entices buyers, demonstrates a home of value, and provides you with a notable sum of money. Do what you can to make the home selling process an easy and satisfactory experience.
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