The goal when you’re selling a home is to sell it as quickly as possible for the best return on your investment. To do this successfully, you’ll need to set your asking price correctly right from the start. Set your price too high and your home may sit on the market. Price your home too low and you will lose money. Let’s take a closer look at how you can set the listing price correctly from the start and save yourself from delays.
💲 Asking Price vs. Selling Price
There is a difference between the asking (or listing) price of a home and the selling price of a home. The asking price is the amount of money you want to get from the sale of your property. The selling price is the amount of money that a buyer pays for your home. In the best situation, you want these two amounts to come within a few dollars of each other.
Ask your real estate agent what the current percentage is for your area when it comes to listing price versus sale price. This percentage will be high the closer you are to being in a seller’s market.
🏡 Determine Your Home’s Value
Before you can create the right asking price you’ll want to learn the value of your property. A good place to start is an online home valuation calculator. To use one of these calculators you’ll enter in basic information about your home that includes address, number of bedrooms, and number of bathrooms. The calculator will give you a basic estimation of your home’s value. Take this home value estimate to your real estate agent.
Another place to look to get a good idea of home value is your recent property taxes. While this isn’t a sure-fire method of determining home value, it can give you an idea of the current value in your neighborhood.
🙋♀️ How Your Real Estate Agent Can Help
Your real estate agent will help you come up with the right asking price by giving you a comprehensive report that takes other factors into account. They’ll look at current market trends, other homes that have sold in your area, upgrades made to your property, and amenities in the local area. This report provides valuable information that sets you on the path to success when it comes to setting a listing price that attracts the right attention from potential buyers.
💵 How to Set to Right Price from the Start
In order to set the right price, you’ll want to take the advice of your real estate agent, but in the end it’s your choice. One important thing to remember during this process is that you can’t place a dollar amount on your memories and experiences in the home. It’s best to remain objective when you’re considering the price.
Another thing to keep in mind is that not all upgrades translate into more money added to the asking price. That hot tub that you found so luxurious may not add the extra value you had hoped. Your real estate agent will let you know which items increase or decrease the value of your property. If there’s something that can be repaired or replaced to positively impact the asking price, consider making those adjustments before arriving at a final decision regarding price.
The current real estate market trends also play a roll. If inventory is limited in your area, you may be able to price a bit higher because there are more buyers looking for homes than there are homes available. This gives you an edge and a bit of the upper hand when it comes to setting your asking price.
📝 How to Manage the Negotiations Process
If you’ve set the asking price competitively from the start, you may find that you’re receiving multiple offers. While this may seem exciting, it can also add a bit of stress. You’ll want to let your real estate agent handle the offer process. They will bring the offers to you. You can either accept the offer, decline the offer, make a counter-offer, or ask for a final & best offer. The last two options require your real estate agent to visit the negotiation table on your behalf.
Your real estate agent has the experience and skills when it comes to the negotiation process to ensure your best interests are represented during negotiations. Having them on your side means that you’re likely to receive a response faster. Once an offer is accepted, you’re well on your way to the closing table.