How to price to sell and still make a profit
Setting The Price
Pricing a home is always closely tied to the local market and part art and part science. Price too high and you lose the attention of buyers and local agents, too low, and you risk losing out on better offers.
If you want to price your home to sell quickly and still profit from the sale, consider these guidelines.
Curb Appeal
Stage it! Fix it up! Curb appeal is increasingly important for perceived market value. But remember, you have the home advantage. Think about the type of person or people your home will most appeal to. Then add those extra touches to your home and tailor your ads to those very buyers. Clear any needless clutter from closets, bathrooms, garage, and porch and your home will look more spacious. Clearing more of your “stuff” makes the home more inviting. Neatly trimmed lawn and sparse yet attractive furnishings will both add to the perceived value of the home and make the home more appealing. Click here for more tips on increasing your home’s appeal.
Don’t Overestimate Your Homes True Value
Instead of looking back to what your house was worth years ago or even six months ago, consider where the market will be in three months and price accordingly. Price a few months ahead of the curve in a down market and your property will look extra appealing.
Use a Comparative Market Analysis (CMA) to find the median price on a home and attend open houses to gain an understanding of what drives home sales prices. It always pays to talk to seasoned real estate experts in your area to gauge a realistic range for pricing a home.
The Asking Price
The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table. But ultimately, the true value of a home is what any buyer is willing to pay.
Encourage Buyer Activity
Studies have shown; the longer a house stays on the market, the less likely it is to sell for the original asking price. Because time is not on your side when it comes to real estate think about a price that will encourage buyer activity. Time may be one of the biggest issues determining if you see a profit and how much you profit.
Value vs. Cost.
Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.
Keep it simple.
Because time is of the essence, always make it easy for the buyers. Remain flexible on when your agent can schedule showings and avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.
