Pricing Your Home to Sell in Today’s Market
The right Real Estate Agent will make sure you understand every factor related to pricing your home in the current market conditions.
Back in the day real estate pricing techniques included pricing your property higher than you hoped to get for it, indicating that a higher priced listing could bring in more lucrative offers overall. The theory was, while you may not get your full list price, you would still end up with more than you originally aimed for. Another course of action had sellers listing much lower than market value, hoping to create a bidding war between desperate potential buyers. Both of these strategies are high-risk gambles and, in today’s market, most people gambling come out empty handed.
Today, buyers have the tools to be very market savvy right at their fingertips. Most buyers have done their research and don’t take a gamble when it comes to pricing their homes. Listings that are priced too high tend to sit on the market without workable offers. The longer they sit, the lower their perceived value becomes. If you’re quick to make a price correction and don’t wait too long to reduce your asking price, you can help overcome this issue, however, if you wait too long, often the damage has been done and stigma has been attached to your property which can result in a lower sale price overall.
Here are our top three tips for precisely pricing your home so that it sells in today’s market:
1. Have your agent do a thorough comparative market analysis (CMA)
Compare local listings and price your home relative to the current local market; the more recent and closer to your property, the better.
Your agent will prepare for you a comparative market analysis (CMA) that is an in-depth version of any research you may have done on your own. The CMA is used to help evaluate how your home will fare against the competition. It takes a look at both homes that are currently listed and those recently sold. The purpose is to find the highest price that will still make the home competitive on the open market. This helps sellers set a listing price for their property. CMAs examine the prices at which similar properties in the same area have recently sold. A professional CMA will ensure you do not overpay for your property. When you are equipped with the recent sale prices of homes similar to the one you are planning on purchasing, you are empowered to make a confident and fair offer. If you want a leg up on the competition, take a look at our recently sold properties.
2. Factor in what makes your property shine brighter than the rest
What makes your home shine brighter than the other local properties on the market and consider if it is a plus or a minus on the pricing balance sheet. For example, if a home has an amazing view, a gourmet chef’s kitchen, an entertainment area with a bar to host friends or family, you will want to factor those into both the price and the marketing. If you are selling a condo, let potential buyers know that your home is the ticket to living a maintenance-free lifestyle. On the other hand, your agent should also help you honestly market your home’s weaknesses in a positive way. For example, marketing your small backyard as practically maintenance-free will appeal to a segment of the market who will find less mowing attractive. Similarly, if there are issues with your property that present a challenge, you need to develop a strategy to address them.
Even though listing features may be simple, understanding how they contribute to the pricing is not as black and white. For example, a swimming pool can add value to a home, but not always if it is situated on a tiny lot. Or, if your listing is close to a railway track, or has fewer bathrooms than other comparable listings, you need to be realistic about how this could affect the overall value of the home and either reflect this in the price or come up with an alternative offer that neutralizes the problem.
3. Find an agent you can trust and actually trust them
Your Real Estate Agent is there for a reason. Their expertise can guide you through tough issues. A good agent already has the inside track on how local market conditions will likely influence your listing price, and if they are really good, they will be honest with you. Instead of telling you what you want to hear, they will let you know what realistic pricing strategy will bring about the best possible outcome for your property. This is a hot button issue within most seller-agent relationships, you have already made up in your mind what your home is worth, and we know every home has sentimental value, but if the house is priced too high it most likely won’t sell. Take a look at what current listings we have and you can compare the pricing. https://www.katronisrealestate.com/listing-types/active-listings
A winning strategy to maximize the return on your beloved home starts with a free home evaluation. We can provide a range estimate over the phone and/or you can book a FREE Home Estimate Appointment for a more accurate value assessment. At Katronis we offer 3 different types of appointments, all of which include our signature pricing strategy to inform you of the market value of your home. You’ll also receive our expertise on how to sell your home for maximum value. We have been in the top 1% of successful realtors in the Fraser Valley since 1982!
There is no cost or obligation for this service. Book your free home evaluation today.
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For the full Fraser Valley Real Estate Market Update package.
Keep informed with the Katronis monthly newsletter. Direct and concise, this detail-oriented newsletter will make sure you are the first to know about changes in the market. We will never send you additional, unwanted emails.
Sign up HERE!