Respond to homebuyers
Once you have prepared your home for sale and understood the costs involved, it is possible to find the right balance between a price that suits you and a price that attracts buyers from your local real estate market. The price should be high enough to reflect the value and appeal of your home, but low enough to attract buyers to your area.
Additionally, it helps to price your home with a strategy in mind. For example, you might decide to go a little lower to attract multiple buyers, possibly triggering a bidding war that ends in an increase in the selling price. Or, you can hedge up to attract a select few buyers ready to immediately make their highest best offers.
Working with a real estate professional can also help you in this specific area. Since realtors and real estate agents constantly monitor real estate transactions in your area, they can make informed recommendations on the ideal way to price your home.
Prices for online search ranges
Since home search tools allow buyers to set price parameters for homes on the market, setting a price just below what you prefer can help attract more buyers. For example, if your home is valued at $300,000, pricing it at $299,999 can help attract more buyers and generate increased interest.
Otherwise, committing to stark numbers can mean home search tools filter your property for swaths of buyers. Remember that the slightly lower price may attract buyers who might be willing to negotiate a sale that works for both buyer and seller.
Online search tools aren’t just for homebuyers. As a seller, check out homes for sale around you to understand how your price compares to others. You can drop the price to just below comparable homes or bump it above the average listing in your area if you think your home has definite advantages over other offerings.
Consult a real estate agent
It is recommended that home sellers always consult a Realtor or REALTOR® when pricing their home. It’s free and you can take advantage of their knowledge of the real estate market and all the other expert advice and tips they offer. Real estate professionals earn money through closing commissions, and their pay is well deserved because of their knowledge of your local market and their negotiation skills.
Additionally, real estate professionals will list your home on the Multiple Listing Service (MLS), the online database where buyers will find your home for sale. Your agent will also schedule viewings and give you advice on staging your home. Therefore, working with a real estate agent will help you sell your home as quickly and profitably as possible.
Although many real estate agents have experience with all kinds of properties, be sure to work with someone who understands your specific situation and is comfortable selling your property. Single-family homes, condos, townhouses, and other types of properties sometimes have distinct nuances and issues. Therefore, a real estate agent with a track record of selling the type of property you own can help you navigate tricky circumstances.
The real estate agent who helped you buy your home might be a great candidate to help you sell. You can also gather referrals from family and friends if you don’t have a real estate agent yet. Additionally, you can search online for highly rated real estate agents or find the agents managing other properties for sale in your area.
Know the market
Knowing the real estate market supply and demand is essential when trying to sell a home. Whether the market is a buyer’s market, a seller’s market, or a neutral market will impact how you price your home.
For example, a buyer’s market often means a surplus of homes for sale, so prices drop to meet the limited number of buyers. Conversely, a seller’s market has opposite conditions, where the tight supply of homes pushes up the price as many buyers try to compete for the limited number of available homes.
If you are in a neutral market, the supply and demand for homes are balanced and neither the buyer nor the seller has a significant price advantage. Often the small details and nuances prevail, and the negotiations are important.
For example, a buyer who allows the seller to stay in the house for 60 days after closing might have the advantage over less flexible buyers. Or, a seller who is willing to cover the buyer’s closing costs can attract more buyers in a stagnant market.