Price is everything when listing your home. It is the singular most crucial decision a homeowner can make upon planning the sale of their house. Bottom line; there is only one factor that determines the value of your property: Fair Market Value.
The old saying ‘your house is only worth what someone else will pay for it’ reigns true. No mystery…pricing is in fact a strategic exercise based on a few simple rules and a lot of common sense. And sellers beware; there is no room for emotion when pricing what to you may deem priceless.
Most homeowners have enough confidence in their realtor to determine the listing price. Prior to viewing your house, your realtor should already be in the game with a ball-park figure. With their expert pulse on your local marketplace…they incorporate location, square footage, style, and age and lot size to determine fair market value. Upon viewing, structural condition and aesthetics will enter into their assessment. Most importantly, it is the comparables of listings and sales in your area that is the agent’s guide to work out the price.
Often a seller will come to the table with a firm figure in mind, and to this the agent will acquiesce. If it is too high then the agent has to bide their time and work on the client to lower their price so it will move. A general rule of thumb is to set your price within 2-5% of the market value.
Beware of your market. If it is a buyer’s market, listing a home for below market value has become a selling and marketing strategy. Bidding wars are all about supply and demand and it is most definitely neighborhood and property specific. There are pros and cons to creating multiple offers to sell your home. If it works, you get more than you expected and if it doesn’t you just sold your home below value. Be very certain you are in a winning situation to consider pricing low. An experienced real estate agent is necessary to assess correctly whether this is a viable approach for you.
Don’t lose sight of the big picture and try to put yourself in the shoes of a buyer. Location still and will always rule…and yes nowadays kitchens and bathrooms do matter! But if you don’t have a granite countertop – no need to despair and get one! Just price to sell…