There are three main strategies when it comes to pricing your home:
1. Underpricing. It’s okay to list the home slightly under market value. After meeting with a Realtor and going through the comparable sales in the area, they’ll work with you to come up with a number that’s just a tad below what those comparable homes have sold for.
The objective of this approach is to attract multiple interested buyers and possibly generate multiple offers. In this market, however, a lot of people are not doing this.
2. Overpricing. Consult with your agent first before pricing your home above market value. This approach is what most of us tend to do as homeowners—just to see how things go. It’s okay, so long as you and your Realtor keep a good handle on the marketing feedback, showing feedback, and internet traffic, reducing your price as needed.
“In this market, not a lot of people are underpricing their homes.”
3. Pricing at the “sweet spot.” This is the best strategy by far: Not too high, not too low, but just right for enticing enough buyers and getting a solid price for your home. It takes a team of professionals like us to come in and show you the comparables and recommend adjustments so that you can sell in that perfect sweet spot.
When it comes to the appraisal that will be done on your home, how can you be proactive? Over 90% of buyers buy with mortgages, and those mortgage companies require that an appraisal be done.
The appraisal process is similar to what we agents do when we come out to your property and give you a market analysis, especially if you’re dealing with an experienced agent. Being proactive is part of the listing process in the beginning.
Making a list of all of the updates you’ve made to the house, tracking the money you’ve spent, assessing your location and lot premium—these are the types of things that add value to your house. The appraisal is inevitable, so you might as well be prepared with the paperwork that justifies your pricing decision.
If you want a free consultation, just give us a call or contact us through www.thefranklinteaminc.com. We’d love to hear from you.
