53% of home sellers are stressed about selling at their desired list price. 18% regret their list price. And 13% wish they had changed their list price sooner.
If you price your home too high, you will spend more days on market. Eventually you will have to reduce your list price to generate buyer interest and sell at market value. If you price your home too low, you will likely end up with multiple offers and possibly a bidding war. And you will still sell at market value.
Your home will ultimately sell at market value, regardless of how you price it. But many savvy agents like to price their listings just right or a little lower than market value to generate more buyer interest and higher foot-traffic.
But how do you determine market value? Let’s see how!
- ✍️ Editor’s Take: Houzeo’s Gold and Platinum listing plans include a detailed Marketing Assessment provided by a licensed listing broker. This Marketing Assessment includes your comps and an analysis of your listing price, helping you avoid pricing mistakes.
5 Easy Steps to Price Your Home for Sale
The right price can be the difference between a quick profitable sale and a property that languishes on the market. Here’s how you can price your home correctly.
1. Start With Price Estimation
You can get your house value estimate on platforms like Zestimate and Redfin Estimate. These are Automated Valuation Models (AVMs) that can provide you with a good starting point. However, they are not 100% accurate and may have incomplete and outdated data.
2. Compare Home Prices in Your Neighborhood
Look at homes in similar size, condition, and features in your neighborhood. This can help you determine whether prices in your area are increasing or decreasing. Tools like real estate comps and CMA reports can help you set an appropriate list price for your home.
Evaluate home listings in your area for a sense of supply and demand in the market. As it is the seller’s market, you can take a risk and price your home a little higher.
3. Drive Traffic to Get Multiple Offers
You can create a bidding war for your property when you get multiple offers. Consider the minimum price you can accept, and start the bid at that price. This may result in a higher sale price than what you had in mind.
4. Finalize the Price Range
There are multiple creative ways to set a price range for your property, you can consider the following:
- Pick a number just below a round number. For example, choose $499,900 instead of $500,000. It’s the same principle as when an item priced to sell at $19.95 seems cheaper to a consumer than at $20.00.
- Price your home below common search ranges. For example, $499,900 will catch buyers searching for under $500,000 homes, while $505,000 will miss them.
5. Reduce Your List Price if It Doesn’t Bring Enough Traffic
Closely monitor the performance of your listing on various real estate platforms. Like Houzeo, Zillow, and Redfin. If your listing performance isn’t at par compared to the average home in your neighborhood, reduce your home price.
Factors to Consider When Pricing Your Home
Factors like inventory and seasonality help to determine the right price. Here are some key points to consider:
- Current Inventory Levels: Given the low inventory level in the current seller’s market, there is a high demand. However, interest rates are high so buyers are cautious when putting in offers for property. Therefore, you may be able to price your home a bit higher.
- Home Condition: A well-maintained and aesthetically appealing home tends to command a higher price. While a poorly-maintained or run-down property typically sells for less.
- Seasonality: Spring and summer are the best time to sell a house. While the fall and winter seasons are not the best time you will need to price your home accordingly.
Bottom Line
The current housing market requires a combination of research, market awareness, and a realistic assessment of your property’s value. To get multiple offers for your home you need to price it appropriately. You can take the help of tools like real estate comps and CMA.
If you need any home pricing assistance, you can opt for Houzeo. You get services like pricing assistance, showings management, offer management, and many more to make your selling journey easy.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner Websites in the U.S.
» Houzeo Review: Find out why Houzeo is one of the best FSBO websites in the US.
Frequently Asked Questions
What is the best way to price my house for sale?
The best way to price your house for sale is to get a Comparative Market Analysis (CMA) report from a qualified real estate agent. This report compares your home to similar properties in your area that have recently sold. This will give you a good idea of what your home is worth in the current market.
How do I find my comps?
To find comps for your home, collaborate with a real estate agent, utilize online tools and databases, or consult local property records.
Can I change the asking price after listing my home?
Yes, you can adjust the price if your list price doesn’t bring enough traffic. You should adjust the price based on market feedback. But remember to communicate the changes to your real estate agent and potential buyers.
What factors go into pricing a house?
Factors that go into pricing a house include location, size, condition, comparable sales, real estate market conditions, upgrades, amenities, recent renovations, and economic and seasonal influences.
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