As a first-time home seller, you may have questions about how to price your home for sale. You don’t want to undervalue your home, but you don’t want to overprice it either. You want to align the value of your home with the current real estate market, making it both desirable and affordable for buyers. How exactly can you do that?
Here’s a few tips to keep in mind when it comes time to price your home for sale.
How do I come up with a price that I should list my home for?
There are many variables that determine how you could price your home for sale. A good place to start is to compare the recent selling prices for comparable properties in your neighbourhood. Features of comparable properties include the age of the home, the approximate square footage, and the numbers of bathrooms and bedrooms.
Once you’ve compared your property to other similar sold homes (current Port Alberni Real Estate For Sale), you can determine the differences and make necessary adjustments. You could consider pricing your home higher if your property has added features like a master bedroom, an attached garage, or a finished basement.
You should also consider how fast you want to sell your home. Ask yourself what is more important: time or money? If you want to sell your home in less than 60 days, consider adjusting your price to be lower than the competition.
All of these factors will help determine your selling strategy and your ideal listing price.
Is it always best to list a bit high?
Pricing your home higher doesn’t always mean that you will make more money. If you have a desirable property with unique features, it could pay off to price it higher. However, you could risk overpricing your home. This could mean your property gets overlooked. The listing may stagnate, and buyers might wonder why your home has been on the market for so long but hasn’t sold. In the end, you might need to reduce your price. But a cost reduction could be just the thing to get a buyer’s attention and re-pique interest in your home.
Another thing to consider when pricing high is automated real estate searches. If a buyer is looking for a 3 bedroom home under $500k and you’ve priced your 3 bedroom at $510k, that buyer could miss you due to the search parameters.
As always, it’s best to get advice from a professional. Consult your Port Alberni Real Estate Agent for insight on pricing your home right.
What about listing low to create a bidding war?
A bidding war is spurred on by fast-rising prices and a huge influx of buyer demand. If the current real estate market is favourable, a low listing could bring on huge interest, multiple buyers, and a bidding war in your favour. However, this strategy only works in certain scenarios. Determining factors include your location, property quality, and the market, among other things. Ask your REALTOR® if this could be an appropriate strategy for your home.
Should I include the exact cost of renovations or home updates in my sale price?
If you bought a home for $400k and poured in another $200k in renovations, you might expect that the house should sell for a minimum for $600k, if not more, right? Not necessarily. Depending on the features of your home and how much comparable properties are selling for, it might be wise to ask for a slightly lower price. If you include the exact cost of renos, you could overvalue your home compared to other houses on the market. Your house could be overlooked.
Of course, there are times when you can take into account the full price of the renos in your home pricing. Your strategy will depend on the market. Ask your real estate agent for advice moving forward to make the most informed decision.
Try a Free Home Price Calculator
A home price value calculator won’t give you the actual value of your home, but it can be a good tool to help you get in the right price ballpark. Try using a free Home Value Estimator for your property.
We hope this article has helped you get a better idea of how to price your home for sale. Information is the first step to getting things done right the first time. That and a good REALTOR® at your side.
Check out How to Prepare and Stage Your Home for Sale for more tips and advice for home sellers.