How to Set a List Price for Your Home
Setting the list price for your home involves evaluating various market conditions and financial factors. During this phase of the home selling process, we will help you set your list price based on:
- pricing considerations
- comparable sales
- offering incentives
- estimated net proceeds
Pricing Considerations – Find the Right Balance
When setting a list price for your home, you should be aware of a buyer’s frame of mind. If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. Even if you think “I’ll take a look at any offer, even if it’s lower”, you may not have that chance. If your home is overpriced, your home may simply look too expensive to even be considered.
The goal is to get as many buyers into your home as possible. It’s really quite simple – the more buyers who become emotionally attached to your home will generate the highest dollars for your home. If you price within the market (and not above the market) this is much more likely to happen.
Price against Comparable Sales in Your Neighborhood
No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market.
Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood. We can furnish data on sales figures for those comparable sales and analyze them to help you come up with a suggested listing price. The decision about how much to ask, though, is always yours.
Competitive Market Analysis (CMA): The list of comparable sales I will bring to your listing presentation, along with data about other houses in your neighborhood that are currently on the market, is called a “Comparative Market Analysis” (CMA).
A CMA differs from a formal appraisal in several ways. One major difference is that an appraisal will be based only on past sales. Also, an appraisal is done for a fee while the CMA is provided by us and may include properties currently listed for sale and those currently pending sale. A true CMA helps determine a competitive listing price.
Offering Incentives to Hasten a Sale
Sometimes incentives are a great way to attract buyers. For example, you may offer to pay some or all of a buyer’s closing costs and discount points required by the buyer’s lending institution, for a home warranty or offer a credit to replace worn carpet or paint.
Estimating Net Proceeds
Once we’ve provided you with an estimate of market value, you can get a rough idea of how much cash you might walk away with when the sale is complete. This can be particularly useful when you start looking for another home to buy. We can provide details as to typical seller and buyer costs, as well as any fees specific to your home or community that may be involved in your sale.
Real estate prices are always changing and there are numerous ways to effectively market a home, depending on a variety of conditions. To discuss how I can help you quickly get top dollar for your home in the most stress-free manner possible, contact me today!