There are two important factors to consider when selling a house: price and time frame. As a seller, you would want to avoid overpricing the property. Demand and interest usually wane after two to three weeks. This means that the freshness of the home’s appeal will decrease dramatically beyond this timeframe.
Overpricing can lead to a house sitting on the market longer. On the other hand, pricing a property too low may attract multiple offers, but it may not also be a financially responsible decision. Different real estate companies here in Guelph will price a single property differently.
These prices are based on their market analysis that takes the local market conditions, the seasonality and the home’s unique characteristics into consideration. The important thing is that a competitive price is set based on facts.
Here are some basic pricing strategies that many successful real estate agents use :
Set the Price Based on Comparable Listings and Sales
Many homeowners set their prices based on emotions. They would want to believe that their family home of 30 years is worth a few extra thousand dollars. What they do not understand is that the wrong price list generates the wrong kind of publicity.
A comparative market analysis or CMA provides you with an apples-to-apples comparison of prices at which similar properties recently sold. It takes the location, square footage, age and general condition of these properties into account.
For instance, a house down the block is similar to your home with three bedrooms, two bathrooms, and around 1,900 square feet. It sold at $320,000 last month. This would let you know that your place could be worth approximately the same amount. Simply add or deduct values depending on your house’s recent upgrades, unique features or lot size variances.
To command for your full asking price, ensure to de-personalize the interior and update the house before putting it onto the market. Get the house show-ready. Give it a fresh coat of paint, repair what needs to be repaired, and de-clutter every room.
Set the Price Below the Competition
Undercutting the price for even 5% to 10% may make you anxious. However, an artificially low price in the right circumstances can make your home stand out from all the competition. It encourages multiple offers on the house, creates a sense of urgency among buyers and sparks a bidding war.
Settle on the buyer who has the stronger offer, and not necessarily the highest offer. This means the buyer with the substantial deposit, pre-approved mortgage, fewer concessions, shorter closing date and more flexibility.
One important mistake to avoid is getting too greedy to the point of jeopardizing the sale. For instance, stringing buyers to build drama can backfire if you take too long to respond. You could wind up frustrating everyone involved and buyers might end up withdrawing their offers.
Selling a house is not as easy as putting up a “For Sale” sign on the lawn and asking for a comfortable price that meets your physical and emotional needs. To market your property competitively, pricing should be based on facts. A current analysis of the market and the right strategies will help you with that.