Pricing a home before listing it on the market is probably the most crucial part on the seller's side. It could go down as a make-or-break decision in the end. Make an overappraisal of the home value, and you are likely to drive away potential buyers. On the other hand, assign too low of an estimate and you are shortchanging yourself of an income you probably deserve in the first place.
Today, buyers and agents have information access on hand, pretty much the same as the realtors. This is the reason why they can have a good ballpark figure of how much a real estate property should be valued. They will know if you are overpricing says Patch.com.
It is also a must to get the right price from the get-go because studies show that homes which have been sitting on the market for the long while are likely to lose some value. And, this is something you want to avoid.
Patch offers this checklist of things you might want to consider beforehand in order for you to zero in to a more accurate selling price for your property.
Comparative Sold Properties
It is advisable to make a comparative analysis of other similar properties sold within a radius around the home. This is one of the best ways to come up with a fair market value for your property, notes Patch.
Try to look for similar properties that were sold from the market within the past six months. The scope of the radius of search depends on how dense the location of your property is. For a highly-densed neighborhood, make a search within half a mile radius around your home. You can go as far as a mile or two for less-densed areas.
Comparative Active Properties
Similar to the first one, also make a comparative analysis of your home with other properties that are still listed on the market. This will give you the right perspective on whether you are asking too much or you are being too charitable.
Take notice of those homes that have failed to attract buyers at their price point, and consider listing your home at a lesser value to gain a competitive advantage.
Current Inventory
When you look for similar properties listed on the market, you may want to look at the competition in general. Real estate is all about supply and demand, Patch notes. If inventory is big, buyers will have more options to choose from and are likely to be willing to pay less. A small inventory favors the seller because this allows them to sell for a bit higher.
Market Condition
It also recommended to gauge the status of the market before setting your price. When the market experiences a slow-down, you have to try to be more aggressive with your price point in order to make a sale.
Patch cited the option of waiting it out when the market is not favorable, but warned of a possible continued decline where you might get less in the end.
