Price It Right

"Price It Right" is a critical strategy when selling real estate, as setting the correct price can determine how quickly and successfully a property sells. Here are key steps and considerations for pricing a property correctly

1. Research Comparable Sales (Comps)

Look at recent sales of similar properties in your area to get a realistic sense of market value. These comparables (comps) should have:

• Similar size (square footage)
• Same number of bedrooms and bathrooms
• Similar age and condition
• Comparable lot size and features (e.g., pool, garage, etc.)
• Same neighborhood or nearby areas

Understanding whether you are in a buyer's market (where supply exceeds demand) or a seller's market (where demand exceeds supply) can impact your pricing strategy:

• Buyer's Market: You may need to price more competitively to attract offers.
• Seller's Market: You might have more room to price higher due to increased demand and low inventory.

Overpricing can cause the property to sit on the market too long, leading to "stale" listings. Buyers often see homes that have been on the market for an extended period as less desirable, assuming something is wrong with them.

• Impact of Overpricing: It may limit the number of potential buyers viewing the home, and could result in future price reductions, which weakens your negotiating position.

While pricing too low can attract quick offers, it may leave money on the table if you don't get competitive bidding. However, in some hot markets, pricing slightly below market value can create a bidding war, potentially pushing the price up.

Consider any major renovations or upgrades you've made to the home when setting the price, such as a new kitchen, updated bathrooms, or a remodeled basement. These can add value, but be realistic about how much of that investment you'll recoup.

• Also, account for any repairs that may be needed, as these will often lower a buyer's willingness to pay.

Hiring a professional appraiser can provide an unbiased assessment of your home's market value based on its condition, features, and local market trends. While it comes with a cost, an appraisal can be helpful for setting a more accurate price.

A real estate agent can help you price your home accurately based on their experience and knowledge of local market trends. They have access to data on recent sales and can advise on pricing strategies that align with current demand.

Pay attention to homes similar to yours that are currently on the market. Look at how long they've been listed and whether they've had any price reductions. This can help you adjust your pricing to stay competitive.

It's easy to feel emotionally attached to your home and overvalue it based on personal experiences. However, buyers will look at it from a purely financial perspective. Keeping emotion out of pricing decisions is essential for setting a realistic number.

If your home isn't attracting enough interest or offers after being on the market for a while, you may need to consider a price reduction. However, try not to drop the price too often or too drastically, as it can signal desperation to buyers.

• Use recent comps to determine market value.
• Factor in market conditions (buyer's vs. seller's market).
• Avoid overpricing, as it can lead to a stale listing.
• Account for upgrades, repairs, and competition.
• Get input from a professional appraiser or real estate agent.

Pricing a property correctly from the start is one of the most effective ways to attract serious buyers and maximize the selling price.