How to Price Your Home: Expert Tips to Get the Right Value

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When you’re ready to put your house on the market, the first thing you need to do is set a price. It’s important to get this right because if you ask too much, your home may not sell, but if you ask too little, you may not make as much money as you could. So how do you know what to charge for your home? Here are some expert tips to help you get the right value!

There's No Sentimental Value in Real Estate

You have to emotionally detach from your home before you can list it as a house for sale at a fair price. It’s not uncommon for sellers to want to increase the value based on the amount of time they have invested in the property and the number of memories and milestones accomplished during your stay there. But buyers won’t pay for your sentimental value.

Original Price vs. Current Market Value

When you’re selling your home, the price should be based on what it’s worth in the current real estate market, not how much money you put into it. The market fluctuates. Your home may have been worth $300,000 when you bought it, but if the current market value is only $250,000, that’s what you should list it at.

Online Home Valuation Calculators

Many homeowners turn first to online home valuation calculators when they’re thinking of listing their house and want to gauge what it may be worth. The problem is these calculators often give inaccurate results. They may not take into account recent sales in your neighborhood, or they may overestimate the value of your home.

They can’t assess the home’s physical condition, and they can’t consider any upgrades you may have made, such as adding on a room or putting in a swimming pool. It’s okay to use an online calculator to satisfy your curiosity, but it shouldn’t be a trustworthy source for basing the price of your home on.

Your Real Estate Agent and a CMA

Your real estate agent is the best source for pricing your home. He or she will have up-to-date information on what’s happening in the market and can help you come up with a price that reflects the current value of your house. In addition, your agent should produce a Comparative Market Analysis (CMA) for you, which will give you an idea of how much similar homes are selling for in your area.

A CMA is a document that shows a list of recent sales in your area, as well as the asking prices and sale prices of those homes. It will also show you how long each home took to sell. This information can be very helpful in pricing your home correctly.

Staging Your House

One way to help ensure that you get the right price for your home is to stage it properly. By decluttering and arranging furniture in an attractive way, you can make your home look its best and give potential buyers a good idea of what it would look like if they bought it. Perceived value is a huge factor in how much a person is willing to pay for a home, so making your house look its best can help you get the most money.

Open Houses in Your Neighborhood

Another way to find out what your home is worth is to attend open houses in your neighborhood. This will give you a sense of what people are asking for similar homes and how long they’re staying on the market. It’s also a good opportunity to talk to real estate agents and get their feedback on how much they think your home is worth.

Get a Listing Appraisal

If you’re not sure whether you’re asking for too much or too little, you can always get a listing appraisal. This is an appraisal that’s specifically done to help sellers determine what they should list their home for. The appraiser will look at recent sales in your area, as well as the condition of your home and any upgrades you’ve made, to come up with a suggested price.

List in a Seller's Market

If you’re fortunate enough to be selling your house in a seller’s market, you may have some more flexibility when it comes to the price. A seller’s market is one where there are more buyers than homes available, so sellers can get away with asking for a little bit more money. But even in a seller’s market, it’s important to price your home correctly if you want to sell it quickly and for the best price possible.

Leave Room for Negotiations

When you list your home, don’t forget to leave room for negotiations. Many buyers will expect to be able to negotiate a lower price, and if you’ve priced your home too high, they may not even bother making an offer. By pricing your home a little bit below market value, you’re giving buyers the opportunity to make a reasonable offer and still get a good deal on the house.

Don't Forget Seller Closing Costs

When you’re pricing your home, don’t forget to factor in the seller’s closing costs. These are the costs that you’ll have to pay when you sell your house, and they can add up to a lot of money. Some of these costs include things like real estate agent commissions, title insurance, and transfer taxes.

Conclusion

So, what’s the best way to price your home? There is no one-size-fits-all answer, but there are a few things you can do to get an idea of what your house is worth. Talk to your real estate agent, look at recent sales in your neighborhood, and stage your home to make it look its best. And if you’re still not sure, you can always get a listing appraisal. By following these tips, you’ll be able to price your home correctly and maximize its value.

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