In the real estate market, a home’s price is everything. Price it too high, and you’ll miss out on buyers, but price it too low, and you might cheat yourself out of valuable profits.
A real estate agent will help you determine where to set the price for selling your home, but having your own instincts is important, too. Here are some tips to keep in mind if you’re making this important decision:
Price for Website Searches
As with every other aspect of our lives these days, most home searches begin online. That comes with its own set of quirks, particularly around the way that prices are categorized on real estate website search engines.
Search results are often grouped in $10,000 or $20,000 increments. So, if you list your home at $205,000, you’re going to miss everyone looking in the $200,000 and under range. By changing the price to $199,000, you’re not losing much profit and gaining more potential buyers in return.
Review Comparable Sales
Again, the Internet makes this pretty easy to do. You can easily see what other homes on your street and in your neighborhood sold for, how long they were on the market, and whether any price reductions were needed to close the deal.
Use this comparable sale information as a starting point, but don’t feel beholden to it. Keep in mind that the market is always changing and you may need to adopt a different pricing strategy depending on where things are in your local market.
Think Like a Buyer
If you had to buy your home over again, how much would you pay for it? This might like a strange question, but it can help you get to the bottom of what prospective buyers might be thinking.
As a seller, you’ll always want to set the price as high as possible so you can get the biggest return on your investment. This might not always be the best idea, and thinking like a buyer can help you see when that’s happening by offering a different perspective.