One of the most important factors when selling your home, if not the most important, is pricing the house correctly from the beginning. Click play for an explanation from Jess, and keep reading to discover what factors go into your home value.
Pricing Your Home
You may be tempted to bump up the listing price on your home just to see what happens, but try to resist.
Newly listed homes lose the freshness of their appeal after the first two to three weeks of showings. After 21 days, demand and interest wane. That means if you decide to list your home home with a high price tag and change your mind two weeks later, you may have already lost your target audience.
On the other hand, you also don’t want to start off pricing your home too low. You’ll want to leave some wiggle room on your bottom line for negotiations, inspections, and repairs.
An experienced agent will run a comparative market analysis.Also known as a CMA, your Realtor will search out similar homes in the same neighborhood that have been actively listed or sold over the past three months. Appraisers do not use comps older than 3 months, so this will be key later in the sales process. Your agent will compare similar square footage, quantity of bedrooms and bathrooms, andalso make sure the homes have similar built years.One neighborhood might consist of homes built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Your agent will also pull history for expired and withdrawn listings in your neighborhood to determine whether any were taken off the market and relisted.Which leads us to finding expired or withdrawn listings. An experienced agent will look for patterns as to why these homes did not sell and the common factors they share, building an arsenal of tools to get your home under contract fast.
Timing is also crucial. Demand for real estate is generally much higher in the spring and summer months. Nearly 40 million Americans move every year, and more than half of them move between May and September. This happens for a variety of reasons; most notably due to school calendar years, weather, and company peak seasons.A home listed in winter will not price the same as it will in summer. Long story short, if you can be flexible about your move-out date, you might want to wait until it’s in your best interest.
If you’re thinking of selling your home, or if you’re just curious what your home might be worth, click for an automatic CMA. You can always also contact us for a complementary, in-depth, analysis of your home.