Pricing your home is crucial (some may say the most crucial) step in the entire selling process. Get it wrong and your home could stay on the market for months – and the longer a home remains unsold, the lower its value becomes in the eyes of buyers.
With so much depending on it, setting the perfect price is a must. When figuring out your property’s worth, remember to keep your emotions in check and be objective.
Read on to find out how you can get it right.
Compare similar properties in the area
Sellers must compare their property to similar homes in the area to help gauge the appropriate price point. When comparing properties, keep in mind these key property characteristics:
- Age of the property
- Square footage (should be within 10% of the seller’s property)
- Number of bedrooms and baths
In terms of location, limit the parameters of the search within a quarter-mile to half a mile radius from your property. If there aren’t a lot of properties in the area, search for similar neighborhoods to find comparisons. Always consider the neighborhood borders and physical elements like major streets, highways, and the like.
Remember, the properties you’re comparing your home to should be listed recently or within the past three months.
With the help of the Scott J. Miller Team, sellers won’t have to worry about the complicated process of comparing properties on their own. The team will provide a comprehensive comparative market analysis(CMA)detailing recent sales of comparable properties in the area.
A CMA will provide a starting point for sellers to compare their home’s amenities and desirability with that of similar properties. This analysis also details these properties’ features, the number of days they stayed on the market, and the prices at which they sold.
Take a look at active listings, but don’t make them your primary point of reference
When comparing prices, you can also take a look at active listings (aka properties that are currently listed). They can be helpful when you need to set a competitive price due to market conditions. However, they shouldn’t be your primary basis when pricing. Also, keep in mind that the sale price of a home is not usually the same as its listing price.
Research market trends
Local real estate market trends will affect the desirability of your property. To get the most out of your sale, tailor your pricing strategy to current market conditions(see if it’s a buyer’s market, seller’s market, or a neutral market).
Every community in Southern California has its own particular market trends, which means you should concentrate your research on your neighborhood. Consider the time of your home sale as well because some months see more market activity than others.
Always leave room for negotiations
No buyer wants to feel like they’ve overpaid for a home so always expect some negotiations and a little back-and-forth on the final price. When setting a price, leave some room for adjustments, but don’t price it too high. If a home is overpriced, it will most likely turn off potential buyers.