When you begin the process of selling your home, you are making decisions about one of life’s biggest investments. With such an important decision, and so many opinions available, you’ll want to be certain that the advice you seek is not just what you want to hear, but rather that it is based on facts and data. In this article, we will discuss how to determine the best price when listing your house for sale.
Unbiased Expert Opinion
When you’re listing your house for sale, you are likely colored with bias and emotion. Perhaps you have lived there a long time. Maybe you’ve put a lot of sweat equity into the home. Naturally, you want to get the most out of your investment but establishing the best price for your home is a very important decision. Just as you would not liquidate your entire 401k plan without seeking sound financial advice, you do not want to sell your house without talking with an experienced Realtor who has experience with your neighborhood and with your price point. You want an objective opinion from an expert. Many homeowners will interview several real estate agents before signing a contract. The key to this process is:
- Hire an experienced, full-time, agent. Make sure they have a substantial track record, selling homes, in your area. If they are not full-time, they are not possibly capable of being devoted to their craft and current on all of the latest market conditions.
- Hire a dedicated sellers agent. While many agents represent buyers and sellers, a dedicated sellers agent will be focused on the needs of sellers, common challenges, best negotiation skills to provide sellers the best outcomes.
Competitive Market Analysis (CMA)
The best way to determine a list price for your home is through a complete Competitive Market Analysis (CMA). In this report, an experienced Realtor will pull market data on recent comparable home sales in your area and be able to discuss how those homes compare to yours and factors that influenced their sales. Most importantly, the realtor should be prepared to discuss how they have established the list price and what factors influenced their suggestion. The best price for your home is one that will encourage activity from real buyers who are ready to make you an offer.
Pricing High To Leave Room To Negotiate
Danger! Danger! This strategy is a proven no-no. Statistics show that the first 30 days on the market are the most crucial. The longer a home sits, the more that prospective buyers may think something is wrong with it. If the home is priced right, it will generally sell quicker. If the home is priced too high, it may even exclude buyers from walking through the property and, more importantly, it will waste valuable time on the market.
It’s easy for an agent to tell you what you want to hear. It’s better for an agent to be honest with you, isn’t it? Some agents will promise an inflated list price and the homeowner will lose valuable time on the market. In these cases, it’s common for the home to sell below market because the property goes through several price drops, spends too much time on the market, and the seller runs out of time.
If you’d like to obtain a free Competitive Market Analysis for your home, contact a dedicated sellers agent at The Donnelly Group today! Our entire team is devoted to improving the lives of our clients, one home at a time.
Don’t forget to check out our latest guide: 10 Ways To Sell Your Home Quickly