Homeowners that are ready to sell want to know that they are listing their home for the best price possible. But, many homeowners make the mistake of assuming that the “best price” is the highest price. If your home is priced too high, it will stay on the market for months or even years. The best listing price is actually the highest reasonable price for the home that is attractive enough to ensure a quick sale. Here’s how to list your home for the best price possible:
Do Your Research
Real estate agents reference comparable homes, or “comps,” when determining how much a home is worth. To find comps, look on the market for homes that are similar to yours in size, neighborhood, and age. It’s also recommended that you look at similar homes that have sold in the last three months. Conducting this research can help homeowners get a general idea of how much their home is worth.
Know Your Market
Are you in a buyer’s or seller’s market? Answering this question can help homeowners understand the current real estate market.
- A buyer’s market is created when supply exceeds demand, meaning there too few buyers and too many sellers. Sellers must compete with one another in order to attract the few people who are looking for a home, which means prices tend to drop.
- A seller’s market is the exact opposite—there are too many buyers and too few homes for sale. If you are currently in a seller’s market, it’s possible the value of your home is higher than you expect.
Ask An Agent For Advice
It’s best to ask an agent for advice before settling on a listing price. No one knows the market, neighborhood, and local buyers better than a real estate agent. An agent can recommend listing prices based on recent sales, the condition of your home, and the local market.
Set Your Feelings Aside
It’s important for homeowners to put their feelings aside when calculating the best price for their home. The memories that your family created in the home are priceless, but they don’t make the home more attractive to buyers. Remember to focus on the actual value of the home instead of its sentimental value.
Pick Strategic Price Points
Think strategically when coming up with the perfect price for your home. Research has shown that buyers tend to perceive an item priced at $4.99 as more affordable than an item priced at $5.00. Therefore, a home priced at $249,900 is going to attract more buyers than a home listed at $250,000.
Buyers also tend to search for homes in five thousand or ten thousand dollar price ranges. For example, a buyer may look for a home priced between $245,000 and $250,000. Keep this in mind when making price adjustments. If your home is not selling at $249,900, lowering it to $247,900 will not bring in new buyers. However, lowering the price to $244,900 would attract an entirely new group of buyers.
Consider Making Upgrades
Homes with energy efficient upgrades are valued up to 9% higher than homes without these improvements. By investing a little in these smart, energy-conscious upgrades, you can increase the base value of your home before it even goes onto the market.
The easiest way to upgrade your home is by conducting a home energy audit using the HomeSelfe app. After answering a handful of questions, the app will recommend smart home upgrades that will make the biggest difference in lowering the operating cost of a home while improving its value. Try to complete a few items on this list prior to putting your home on the market so you can ensure you sell your home for as much as possible.
Following these tips can help you determine the perfect listing price for your home. Now, the next step is to sit back and wait for buyers to take interest in your beautiful home!