Pricing Your Home to Sell

While you might think that the price of your home will be dictated by how much someone is willing to pay, often known as fair market value, establishing an asking price is key. It’s the starting point that influences how people view the property. If you overvalue it, people may be afraid or unwilling to make an offer, or they might scroll right past the listing without considering it at all. You don’t want to underestimate the value of your home, either. No seller wants to leave money on the table by choosing a lower price point than they had to. If you go too low, buyers might assume there’s something wrong with the place. Finding the perfect listing price is where agent expertise comes into play.

Working with a local real estate agent who is an expert in the area market is essential. They have specific insight into the current market trends and a more complete assessment of your home and its value. Your agent knows what makes sense.

Your agent will begin by creating a comparative market analysis, referred to as a CMA or comp. This is a thorough, insightful, and hyper-local estimate of your property. Comps are used as a reference point for pricing your home. A comp considers details like recent sales of similar homes, how long area homes have been sitting on the market, price fluctuations, and other factors that could serve as indicators of overall market health.

Another process for pricing your home or property is an appraisal. Appraisals are conducted by an independent licensed professional who completes an in-person walk-through of your home and objectively analyzes your home’s value. The value given to your home is based on upgrades, additions, and other changes you have made.

While setting the perfect price is important, be flexible and willing to adjust if necessary. You will be best served by taking advantage of your agent’s expertise. They can help you maximize your investment and profit while also meeting the demands and expectations of the local market.