Use our 5-pronged approach to be sure you strategically price your home right
1. Study the sold comparable properties
Develop one or more Comparative Market Analysis reports in order to see what homes an appraiser might use to appraise the value of yours. This is very important to know, as most buyers choose to finance their purchase and therefore an appraisal will be necessary to close their loan on your home. Basically, if your home is overpriced, even if you find a buyer, the mortgage company won’t write a loan any higher than appraised value... and once appraised, a buyer most likely will not pay above appraised value.
2. Construct one or more absorption rate charts
Do this to see statistically how long similar kinds and locations of homes in each price bracket are sitting on the market this year, and compare to your goals. If you have time to wait, choose the price bracket that is the least crowded (has the fewest amount of homes on the market). If you need to sell fast, choose the price bracket that is selling the quickest.
3. Research what buyers can currently buy for your target price bracket
Once you have an understanding of the other homes on the market in your price range, use competitive pricing to position your home to stand out as a clear value among those choices.
4. Offer incentives
Giving incentives to buyers adds to the value of your home as a product. Examples are “Quick Close”, “Inspections Included”, “Home Warranty Included”, “All Appliances Included”, “HOA Fees Paid for First 3 Months,” etc.
5. Stay on top of sales statistics
Don’t “set it and forget it.” After putting your home on the market, if the market is not responding (many showings, offers, inquiries), be willing to revisit sales stats and reposition your home in the market— this means improving the list price intelligently.
By simply doing these five steps, you will be ahead of the market curve. If your home is priced accordingly, it should sell quickly and for the highest price any buyer will pay at that time.