How to Price Your Home
Pricing your home is no easy task. It’s why a lot of us have Realtors® to help us make those tough choices based on market data and their own professional input. However, when you’re trying to determine that number for your house, you need to know that the final decision is yours. And coming up with that final figure might feel a little tricky. So to help you out, we’ve created a whole list of tips when trying to put the final amount on that price tag.
Don’t Price Base On Emotions
You might have put a lot into your home, especially if you have lived there for a long time. You’ve probably done a significant number of repairs or even upgrades to the property, and of course, it feels special to you. After all, it’s your home. It has to be worth more than the others in your neighborhood based on how well you’ve maintained it over the years. However, it’s important to note that the market does not see the personal aspect of owning a house.
Keep the Market in Mind
Remember, when you start meeting with real estate agents, and they show you what other homes in your area sold for, they are not telling their opinion of what your home is valued. They are showing the market’s opinion of what your home is worth. The market comes up with these figures based on internal and external factors. It considers your neighborhood’s condition. You might have put a lot of money and effort into your house. Still, at the end of the day, the only opinion that matters is the market’s opinion. You have to consider that when you decide on a final price.
What are the External Factors the Market Weighs?
External factors are factors that you have no control over. That includes interest rates, competition, local economy, builder offerings, neighbors’ listings, etc. All of these factors happening in the Augusta-Aiken area can affect your house’s listing price.
What are the Internal Factors the Marker Considers?
Internal factors are aspects of your home you have some control over. These factors include its location, size, amenities, and of course, its condition. The market weighs those factors in that order, with the location being the most significant internal factor that is considered.
Look at Comparable Listings in Your Area
This is a great way to determine how much you can list your home for. However, you want to limit your search to homes in your area. When you’re examining listings with similar amenities and conditions, you must consider what price they’ve placed their home for. After all, what your neighbor was able to list their home can help you establish the price range you should lock your home into.
Examine Houses that Have Recently Sold in Your Neighborhood
When trying to price, you want to look at houses in your neighborhood that recently sold (within the past 3 months). If there’s a home in the area that’s currently under contract, contact the listing agent and ask about the agreed-upon price.
Look at Homes That Expired or Were Withdrawn From the Market
When you look at listings that expired (didn’t sell) or withdrawn (still on the market but no longer marketed by the buyer), keep in mind the square footage and condition of the house. Are those features similar to yours? Then examine the price that they listed the home for. You’ll generally want to avoid selling for your home at the price a comparable listing failed to get. That asking price is probably a strong indicator why that home failed to sell.
Be Wary of Renovations
It’s important to note here that just because you spend x amount of dollars on renovations does not mean you will be able to recuperate the same amount. Many renovations and upgrades are based solely on taste alone. However, some enhancements such as adding a new project (shed), finishing a basement, or adding a bedroom, will increase the long-term value of your house. But luxurious upgrades like a pool or landscaping will not see such high returns. Make sure you do your research on which home improvements increase the long-term value of your house. And don’t be dissuaded if your renovations will not give you high yields.
Listen to Your Real Estate Agent
It’s crucial that when you’re working with a real estate agent you listen to what they have to say. They’ll likely base their suggestion on the market data and want to move from there. However, as the client, you have the right to voice your thoughts on what you feel your home is worth. Keep in mind you don’t want to bicker with your agent. You simply want to make your opinion heard, but you want to base that opinion based on the research that you’ve done.
Your Listing Price Doesn’t Always Equal The Sales Price.
Hopefully, these seven tips will help you develop that final number in your listing. Remember, your listing price isn’t typically what your home will sell for you. But it lets buyers know whether they can work with you to get a price that both parties will find sastficatory.