One of the biggest challenges in selling your home is pricing it right. A fair price typically goes hand-in-hand with homes that sell quickly.Â So here are some pricing tips to help assure that you price your home to sell.
The most reliable method of arriving at value is to review the recent sales of similar homes in your neighborhood.Â These homes, known as â€œcompsâ€ will give you the best information about where to start your pricing. You can also visit similar houses that are currently for sale to see how they compare to yours.Â But keep in mind that their prices are asking prices and may or may not be realistic.Â Take a look at how long those homes have been marketed to get a feeling for the accuracy of those asking prices.Â Long market times are typically tied to overpriced homes.
To get an accurate idea of price, donâ€™t strictly rely on square footage when you look at the comps. Youâ€™ll want to obtain some details about how those homes are laid out, what features they offer and if there are any upgrades.
In most cases, homebuyers will need to obtain a mortgage. Mortgage approvals hinge on many things, but one of the most critical factors is an acceptable appraisal of the homeâ€™s value which must be no less than the contract sales price. Itâ€™s important to keep this in mind when you are setting your price, so you donâ€™t price your home too high. Even if you were, theoretically, able to obtain a contract at a higher price, if the appraisal comes in lower than the sales price, the buyer will be unable to secure a loan for the amount needed to close the sale.
Itâ€™s important to keep emotions out of the pricing process. The price of your home shouldnâ€™t be based upon what you paid for the house, how much youâ€™ve enjoyed living there, what you need to buy your next home or the fact that your kids grew up there.Â Instead, base your price strictly on what your house is worth today in your neighborhood.
Donâ€™t overprice your home â€“ overpricing only gets you more of one thing and it is not money.Â Overpricing gives you longer market time and that, statistically, leads to lower sale prices. Unless you are in a really hot market with very low inventory, you will likely just end up lowering the price on your house, a signal to buyers that it was overpriced. Likewise, pricing your home under market value to encourage multiple bids can work well in low-inventory sellerâ€™s markets but easily can backfire, if your market has ample inventory of homes for sale or if homes in your area are not selling quickly.
The most important step in pricing your home is to talk to your RealtorÂ®. A qualified real estate professional knows whatâ€™s going on in your neighborhood and can advise you on the best pricing strategy for your home.
Are you ready to sell your home? If so, contact me today. Iâ€™ll prepare a customized market analysis to determine the value your home so you can be sure to price it right for your neighborhood.
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Allyson Hoffman is your ultimate real estate resource for Chicago's North Shore, North and Northwest Suburbs and surrounding areas. Visit my website for detailed information regarding todayâ€™s real estate markets.
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