Determining the best asking price for a home is one of the most challenging, and also important, aspects of selling it. In fact, it’s a balancing act. You don’t want to set a price that’s so high that it discourages showings and serious offers from the very qualified, motivated buyers who would ultimately determine your property’s top market value. On the other hand, you don’t want to set a price that’s so low that it attracts lots of interest, but sets the stage for offers and negotiations that could result in your getting less than the market would actually support if you were a little more aggressive.
Moreover, this balancing act is even trickier now, given that we’re in a buyers’ market that is fraught with a variety of economic uncertainties. All the more reason why, when you make your decision to sell, you should do plenty of research as well as seek out the advice of a real estate professional who understands the intricacies of pricing your house to sell.
So What’s Your Home Really Worth?
Simply put, your home’s value is not determined by you, but by what the market is willing to pay for it at a given time.
These days, the market increasingly includes home buyers who have researched property values over the internet for months, have already viewed at least 10 homes, and are not under any pressure to buy. Indeed, they may be quite hesitant in hopes of missing out on one of those unbelievable deals that continue to pop up.
In trying to determine your home’s true market value and, as such, set your expectations for what you’re likely to sell it for, you should:
- Try to be impartial. Unfortunately, the market is not interested in what you originally paid for your home, or how much you need to sell it for to buy your next home and meet your financial goals. In addition, your home may have features that you highly value, but which might actually reduce its market value by limiting the number of potential buyers.
- Remember why you are selling. Do you want to sell or do you need to sell? While in a buyers’ market you’ll seldom get more money than is required to meet your financial needs. Unfortunately your personal situation may dictate that you take less money than the market would otherwise be willing to give you if you had more time.
- Research online and in person. You can find out a lot about your local market through research at online, by talking to a real estate professional, or by going to open houses in your area and making comparisons with your home in terms of location, size, features and condition.
- Get a Comparative Market Analysis (CMA). Drawn from your local Multiple Listings Service (MLS) database, a CMA presents pricing information, property details and photos of homes similar to yours (termed “comparables”) that recently sold, failed to sell, or are currently on the market in your area.
Patrick Parker Realty will always provide you with a CMA as part of the listing presentation we show you when you consider one of our Realtors to represent you in the sale of your home.