How to Accurately Price Your Home to Sell

Deciding to sell your home is a pretty big deal, and coming to a consensus on the listing price can be the first big hurdle. Whether you are planning on working with an agent or listing on your own (which we never advise), it can be a challenge to learn how to price a house. If you begin to ask yourself how much you should sell your home for, this guide will aid you through the process.

Continue to read to find out how to best price your home to sell.

1. Learn from Other Sellers' Mistakes

Review expired listings from your area to gain insights on pricing your home to sell. Compare original list prices of recently sold homes with their final prices. Did any of them take price cuts to get a sale? Perhaps it was overpriced to begin with?

2. Don't Let Your Asking Price Lump You in with the Competition

Have you ever heard of the real estate term price banding? It is the practice of looking over the current inventory in your neighborhood and finding a less crowded price point. Prices can get bunched up as sellers try to price their homes competitively.

3. Don't Overvalue your Home's Upgrades

Spending thousands to renovate your kitchen and install a swimming pool means you can add that to your home's selling price, right? Not always. Some renovations might increase your home's value, but it is unlikely you will get back the full dollar amount that you put in. Before investing in improvements to your home, look at comparable homes for sale near you to see if upgrades are in line with the neighborhood.

4. Don't Let Your Emotions Get the Best of You

As a Palm Beach County Realtor, Market research should be your guide when pricing a home to sell, not your emotions. Buyers typically don't care what you pay for the house, the sweat equity you put into the property, the years and memories you created in the home, or how much profit you hope for. You always have to separate yourself emotionally from the property, because when selling, you have to focus on it as a business transaction. Chances are, it is your biggest asset and you have to do what is right.

5. Adjust the Price or Approach as Needed

If, despite your efforts to identify the right price, your home isn't attracting offers, regroup with your agent as soon as possible. Try to figure out why your home isn't selling and be open to making adjustments that will fix the problem.

Pricing: While it is unlikely in a hot market if your home is languishing without an offer, it might be necessary to drop the price. Perhaps the market has changed since your agent conducted the CMA. Look at some more comparable properties and adjust accordingly.

Marketing: Ensure there aren't any errors in your listing. Confirm with your agent that the home is being shown in all of the appropriate places. Your agent might need to boost marketing efforts to increase the number of people who see your listing, like offering more open houses or posting 3D tours on social media.

Alternate Ways to Sell: If your home isn't attracting a traditional buyer, you might have to look into other options, like selling to an iBuyer—a real estate company that uses technology to buy homes with cash. The process is typically faster and you don't have to get your house ready to sell, iBuyers don't operate in every market and you might need to have a specific style of home to qualify.

According to home sales expert Bill Gassett of Maximum Real Estate Exposure, alternative methods for successful home sales, such as iBuyers, have become popular.

"Over the last several years iBuying has become a different option for many potential sellers. If you are unfamiliar with the term "iBuyers," they are large investors buying properties. They are different than traditional investors like "we Buy Ugly Houses" who look for distressed houses.

IBuyers are the complete opposite. They want to buy homes that are in excellent shape. A significant advantage over many investors is that they will pay closer to fair market value. You still won't get the same offer you would as when selling with a Realtor; however, it shouldn't be a number that makes you feel sick to your stomach.

The most well-known iBuyer is Opendoor. You may have seen their ads on television. They have a solid reputation for having a good track record in the industry. Fair warning - the commission fees are higher than those of traditional real estate brokerages. You can expect to pay around 7-8 percent of the purchase price.

 

While these buyers might not be for everyone, they are a growing presence that may work well for some home sellers."

Bottom Line

Several online tools can help you come up with a ballpark asking price for your home. You will be best served by taking advantage of an agent's expertise or an appraiser's professional assessment. This can help you maximize your investment, and your profit, while meeting the local market where it is. Let professionals at Palm Beach Coastal Realty guide you in finding your new dream home in the many Palm Beach Gardens communities in Florida today!