Sunday, August 14, 2016

The Best Pricing Strategy for Selling Your Home

No matter how wonderful a home is, there is a correct price point for it, and it’s one of the most important aspects to selling it quickly and for full price. That’s why the best pricing strategy for selling your home is to consult a real estate agent who will gather comparable sales data for an accurate listing price. An agent will look at homes on your street and in nearby neighborhoods with comparable factors including square footage, floor plan, features, acreage, lakefront, upgrades and more.

Here’s some important factors your realtor will consider and things you should keep in mind during the process: 

1. Actual Value
Sentimental value can often cause buyers to overlook the actual value of a home. If you’ve spent a number of years in your home or you’re recounting wonderful memories and seeing dollar signs, it’s important to get an outside unbiased opinion from an expert. Don’t discount all your memory makers, as it’s possible a finished bonus space you completed for your kids play area or other renovations will add value to the home

2. Don’t Overprice
It may be tempting to add an additional $10k or $15k onto the listing price your agent suggests, but typically overpriced homes sit on the market longer because buyers either a) don’t want to view a home that might not be in their reach or b) cannot budge on their budget.

3. Recouping Renovation
Cost In most situations, renovations should be done to make the house more comfortable and enjoyable for you and your family, not just to recoup money should you decide to sell. Some renovations will definitely add value to your home’s bottom line, however, don’t expect a dollar-for-dollar return. According to Remodeling Magazine’s 2016 Cost vs Value Report, the best return you will get is from renovations done to your attic insulation (fiberglass), manufactured stone veneer on the home exterior and new garage doors. Keep in mind that your home’s value will hit a maximum even if your renovations reflect a higher price point. This is due in large part to the surrounding homes in your neighborhood.

4. Don’t Trust Online Pricing Estimates
Online housing resources like Zillow and Trulia have created some misconceptions about home values. While these sites can be helpful for gathering an initial snapshot of a home, the home values should not be used to help price your home. Using numbers based on these sites can cause pricing mistakes. Overpricing is troublesome for many reasons, including time on market and missing out on valid buyers, while underpricing is obviously a mistake no seller wants to make. We encourage you to use the internet and online resources for information but don’t take everything you read as fact.

Only a realtor can take comparable data from several different factors and use their expertise to price your home correctly. It’s important to take the pricing process seriously as it can make or break a successful and quick home sale.

If you have questions on what you’ve read, please feel free to email us at sales@upnorthproperties.com or call 218-820-7355.