Deciding to sell your home can be tough. Deciding on its selling price? Even tougher.
Set it too high and you’ll price out buyers. Too low, on the other hand, and you’ll end up with the short end of the stick.
How exactly do you arrive at a just-right price? Take heed of the tips below:
Know the playing field
Property value is largely determined by local real estate market conditions. Hence, the price you set must be in line with what the market dictates. To establish a baseline, take a look at the going rate of comparable properties listed in your neighborhood. Benchmark against properties of similar size and age as your home. The listings must be no older than three months, as appraisers will not use data beyond that threshold. Too busy to play real estate detective? Get your real estate agent to furnish you these data.
Price on the lower end
Underpricing your beloved home might sound blasphemous, but it’s actually a genius strategy. A house that’s just under market rate can instigate a bidding war among would-be buyers. Oftentimes, the bids end up at or near the original asking price you had in mind. Listing below market value is also a great strategy for those looking to sell quickly.
Price with foresight
In a perfect world, a listed property would sell in a matter of weeks. In reality, however, it can take a few months to close a deal. In the intervening time, real estate prices may have gone down or up, depending on local market forces.
If you price your home high but property prices begin dropping in the months ahead, your property will look overpriced. Conversely, if you price your home low but property values inch up, you may end up selling at below market rate. In short, price not just for today’s market but for what the market will be in a few months’ time.
Sweeten the deal
Price isn’t the only factor that determines a successful sale—incentives can also sway buyers into choosing your home. For example, you may offer a renovation budget that buyers can use to customize their newly bought abode. Or you can offer to foot the closing costs if the sale pushes through.
Factor in home upgrades
The home improvements you’ve undertaken over the years can yield dividends when it finally comes time to sell. Buyers are especially drawn to bathroom and kitchen remodels. Upgrades that make your property stand out, like solar panels or home automation, can also boost your asking price.
Selling a home can indeed be a challenge, especially when setting the price of homes for sale in Manhattan Beach, CA. Fortunately, our team at Coastal Luxury Living has deep knowledge of the local real estate market. With our decades’ worth of experience selling homes, we can provide expert guidance on pricing your property.