What’s in a Price? How to Properly Price Your Property!
Properly pricing your property is arguably the most important step in selling your real estate. While this can be a challenge in a changing market even for seasoned real estate professionals, those who decide to sell their property themselves can feel completely lost. If you price too low, you’re leaving money on the table that you could use for your next purchase, but if you price it too high, it’ll take longer to sell than you want. How can you figure out the price that’s just right.
Take a Step Back
One of the biggest mistakes people make in properly pricing real estate is being too emotionally close to it. If you’re putting your childhood home, a family estate, or even your first real estate purchase up for sale, there’s a good chance you’re going to feel a lot of emotions. While this is completely expected, you’ll need to be able to put your feelings aside to find the right price for your property. While you might see the charm and character of a property, it’s important to be objective in your assessments. Are your fixtures truly character pieces or are they outdated? Is your home quirky or full of code violations? Don’t let your personal history and good memories of the property increase your perceived value.
Questions to Ask: What are the true “pros” of this property? What are the true “cons”? If I didn’t know what this property was originally purchased for, what would I pay for it now?
What’s Your Timeline?
It’s a well known fact in the real estate industry that everything will sell eventually. The key behind that wisdom is that most people can’t wait for “eventually” to happen. In most cases, people tend to sell one property to buy another or otherwise make arrangements where holding on to a property for no reason other than they can’t find a buyer just isn’t feasible. While you don’t need to price so low you’re giving the property away, a more modest markup will help to move the property more quickly.
Questions to Ask: When do I want/need to move? What costs will I incur if I don’t meet this deadline (taxes, maintenance, HOA dues, etc)?
Take a Look Around
One of the easiest ways to see what your local real estate market is like is to take a walk around your neighborhood. How many properties are currently for sale? How long have they been for sale? If you’re seeing a lot of “For Sale” signs, but they’ve been around for weeks that will indicate you may be in a cool market. On the flip side, if you’re seeing a real estate agent’s sign for a few days and then they go away, you know you’ve got a hot market on your hands. If properties are flying off the market in your area, it’s a pretty safe bet that you can list your home for a premium price and will probably still see great activity.
Questions to Ask: Is there a lot of this type of property in my area for sale? How long are these properties staying on the market? How does my property compare?
Location, Location, Location
It may be cliche, but the location really is (almost) everything. Property that is landlocked, full of wetlands, or uniquely zoned is going to be valued at a much lower price by potential buyers than a property that is free from restrictions or technicalities (like easements). Additionally, the surrounding area can have a large impact on correct pricing. You can have the nicest home on the block, but if the neighborhood isn’t desirable, the property won’t be able to garner as high of a final sales price as the same home in a better location would.
Questions to Ask: How would you rank the location/area of this property? How does this particular property compare to others around it?
Doing your research is important when it comes to selling your real estate. While public records and real estate listing websites can provide a wealth of knowledge, it may be wise to talk with a licensed real estate professional who can assist with the full sales process from pricing to negotiations to closing. Interested in selling on your own? Talk with a RealtyHive representative today on how to Create Your Best Chance to Sell!
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