How To Price Your Home
If you’re reading this it’s likely you have questions about how to price your home. Although this post is geared towards Georgia Home Owners, suffice to say these principles apply in almost every market. To come up with How To Price Your Home you first need to know a few things.
Comparables: The Building Blocks of Home Pricing
To set an accurate price for your home, you’ll first need to gather information on recent home sales in your area. Real estate professionals refer to these as “Solds” or “Comparables.” Appraisers and other paid evaluators typically start by looking at homes within a 1-mile radius and comparing basic square footage. They then dig deeper, considering factors like the number of bedrooms and bathrooms, lot size, and unique features.
Although online tools like Zillow offer a computer-generated estimate, remember that these are based on algorithms and may not accurately reflect your home’s true market value. Aim to collect data on at least three solid comparables to get a ballpark figure for your home’s worth.
The Strategy: Price Low to Sell High
You may wonder whether to set your price high and leave room for negotiation or to price it low in the hopes of inciting a bidding war. Our research shows that the latter strategy is far more effective. We studied eight popular cities and found that homes sold within the first 30 days on the market consistently fetched the highest prices. I In some cases more, Duluth Homes, for example sold for over listing price when sold in the first 30 days. Homes in Buford are known to go much more than that as well.
Every 30 days that a home fails to sell, the cost to the home owner is on average 3%.
The Cost of Waiting: 3% Every Month
For each month your home remains unsold, you incur a cost, averaging about 3% of the home’s value. In monetary terms, that’s a staggering $9,000 per month for a $300,000 home. This loss can quickly add up, making it even more crucial to price your home to sell quickly.
Additional Factors to Consider When Pricing Your Home
Real estate markets can be seasonal. In some areas, homes sell quicker and at higher prices during certain times of the year. Be sure to account for this when pricing your home.
Any improvements or renovations you’ve made can add value to your home and should be factored into the price. Keep records and receipts to prove the value of these enhancements.
Are home prices in your area trending upward or downward? Is it a buyer’s market or a seller’s market. Inventory, or “what’s for sale” can help you determine which market you are in. In general if you have less than 6 months of inventory available then you’re in a seller’s market. Understanding the bigger picture can help you set a price that’s both competitive and realistic. Be sure to review the market trends to get the best ideas.
While it’s possible to come up with a reasonable estimate on your own, hiring a professional appraiser or working with a real estate agent can provide you with a more accurate and personalized pricing strategy.
Pricing your home correctly is crucial for a fast and lucrative sale. By researching comparables, understanding market trends, and considering additional factors like home improvements and seasonality, you can set a price that meets your selling objectives.
Whether you’re in Georgia or any other market, taking the time to price your home effectively can make a significant difference in your selling experience. Armed with the right information and strategy, you’ll be well on your way to a successful sale.