Good Home Pricing Strategy is Money
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How to Price a Home to Sell
When going to sell your home, a good pricing strategy will help you get the highest seller net proceeds possible. Price too low and you may leave money on the table. Price too high, and your listing might sit on market and invite lowball offers. Pricing a home to sell involves a mix of market research, understanding your property's unique features, and assessing current market conditions. Here's a step-by-step guide to help you price your home effectively.
Research Comparable Properties
Look at recently sold homes in your area that are similar to yours in terms of size, condition, location, and amenities. These are called "comps." Online real estate websites like Zillow, Redfin, or Realtor.com can provide this information.
Compare Features
Analyze the features of the comps compared to your property. Consider factors like square footage, number of bedrooms and bathrooms, upgrades, lot size, and any unique selling points.
Consider Market Conditions
Understand whether you're in a buyer's or seller's market. In a seller's market with low inventory and high demand, you may be able to set a slightly higher price. In a buyer's market with more inventory and less demand, you might need to price more competitively.
Factor in Time
Determine how quickly you need to sell your home. If you're in a hurry, you might need to price more aggressively. If you have time, you can afford to be more patient with pricing.
Consult with Real Estate Professionals
Reach out to real estate agents or appraisers who have experience in your local market. They can provide valuable insights and help you set a realistic price based on current trends and data.
Consider Online Valuation Tools
While not as accurate as a professional appraisal, online valuation tools can give you a ballpark estimate of your home's value. Use these as a supplement to your research.
Factor in Costs and Fees
Don't forget to account for closing costs, real estate agent commissions, and any repairs or renovations that might be needed before listing your home. If you’re listing your property on a for sale by owner site, you’ll save on realtor commissions, but you may not reach as many potential buyers as those homes listed on your local MLS.
Set a Competitive Price
Based on your research, set a price that is competitive but also reflective of your home's value. Avoid overpricing, as this can deter potential buyers and prolong the selling process.
Be Flexible
Be prepared to adjust your price if your home doesn't attract offers within a reasonable timeframe. Market conditions can change, so staying flexible is key to a successful sale.
Monitor Market Activity
Keep an eye on how similar properties are selling in your area. This will help you gauge whether your pricing strategy needs adjustment.
Redfin, Zillow & Other Online Sources for Home Price Data
Redfin has a home price index, (called the RHPI), which is published in a report on the Redfin News site on the second-to-last Tuesday of each month. Redfin also features market data and other market and price articles on the Redfin Data Center.
Zillow also offers homeowners free online tools to price a home to sell. The Zestimate is Zillow’s proprietary estimate of your home’s value. Zillow recommends starting with the Zestimate and using other data to adjust that price estimate up or down.
As mentioned by Bankrate, Automated Valuation Models (AVMs) such as those mentioned above from Redfin and Zillow, are a good starting point for determining home values.