The latest home insights reveal that this is a tough market for buyers, so tough that you as the seller may have plenty of reasonable offers on the table. But because you have the upper hand in this current market doesn’t mean that you shouldn’t do your due diligence and price your house to sell. Even in this fast-moving seller’s market, it is a good idea to employ good selling strategies to ensure that your home sells as fast as possible. Here are some ways to ensure that your house doesn’t become a stale listing.
Keep Your Emotions In Check
One of the biggest obstacles to selling a house may be how you perceive your house. While you may have invested much money into it over the years and have a strong connection to it, the value you place on your house and the actual value it has in the market aren’t the same. It can be tough to believe your house is worth a higher price than it is, only to discover that it is thousands of dollars lower than you think it should be. Likewise, it can be exciting to learn that your house could be worth more than you think it is. But, until the buyer closes on it, the price of your home is at the mercy of the market. Practicing emotional constraint during the selling process is a great way to price your house.
Use A Free Home Value Estimator to Get An Idea of Your Home’s Value
How can you get a realistic idea of what your house is worth? If you are toying with the idea of selling your house and you aren’t ready to solicit the help of a real estate agent, there are numerous home value estimators online that you can use to determine the value of your house. Before you get too excited or frustrated about the value these sites return, keep in mind that there is a median error rate for them which may be off by as much as 10 percent. Also, some of these sites may not consider any significant improvements you may have recently made on your house. On a brighter note, these sites will give you a general idea of how much your house is worth.
Work With a Real Estate Agent to Get a CMA
While a home value estimator will give you a ballpark of what your house is worth, if you want more accurate results, consider getting a CMA (comparative marketing analysis). A listing agent will be able to provide you with a CMA. This report could include up to thirty pages of critical information about several properties nearby and how much they sold for, maps, charts, and information on your property. While you can do your own CMA, it is a good idea to allow a real estate agent to prepare it since they have extensive experience compiling them.
Set Your Price Competitively, Not Too High or Low
Setting your price competitively goes hand-in-hand with keeping your emotions in check. If you price your house too high, you may have few buyers who show interest. On the other hand, if you set your price too low, you could lose money. Comps from the CMA will help you get a good idea of a reasonable selling price. For instance, houses that sold in your area for $245,000 to $355,000 recently will provide you with a good range of where you should price your house. Your house may be the average of these prices. And recent renovations that add a significant ROI (return on investment) could drive that average up. While it is your responsibility as a seller to choose a selling price, an experienced listing agent will be able to help you choose a competitive price based on market trends.
Include Renovations You’ve Recently Made To Your Home
Although every renovation you make to your house may not yield much, some upgrades can drive up the value of your house. For instance, finishing a basement can add up to 75 percent ROI. Replacing your front door with a steel one can get an ROI of 65 to 91 percent. Renovating a kitchen or bathroom in specific markets can provide an ROI of upwards of 100 percent. To get an idea of how much value your recent renovations may add to the price, some home improvement calculators online can help. Also, if you plan to make renovations, a listing agent may be able to provide insight on what you should upgrade.
Get An Appraisal or an Inspection
Having an appraisal or an inspection is not the best way to determine the price of a house. The CMA will be the best strategy to price a house, but an appraisal will give you insight into how lenders value it. This doesn’t mean that the price will sell at the appraised value. If buyers want your house, they may be willing to pay the additional money to bridge the gap between asking and appraised value.
When determining the value of your house, you should employ strategies backed by solid proof. Pricing too high based on a hunch or emotions won’t get you the interest from buyers you deserve. And pricing too low may cause you to lose money on the sale of your house. When pricing your home, keeping these strategies in mind will help you price your house as close to the right price as possible.