One mostly finds it difficult to Set the Selling Price of home. Buying and selling a property can be frustrating at times, especially if you’re doing it for the first time. There are multiple factors and elements that affect property value.
How to Set the Selling Price?
From job relocation to a noisy neighborhood to immigration—there are dozens of reasons why people change their homes. Sometimes, changing homes might entail selling your property and that process can be daunting. Please remember that there isn’t a definitive timeline for selling a house. It could take a little longer than expected because, at the end of the day, you want the best price for your property.
In such a situation, the first thing you need to do is check if your house has been priced correctly.
The longer your house stays on the market, the lower are its chances of selling at your desired price. But there are a few things that can help you correctly price your home to sell.
- Consider recently sold properties with similar attributes
- Check if it’s a buyer’s market or seller’s market
- Ask your realtor
- Test the waters
Consider Recently Sold Properties:
Similar or comparable properties are those that are the same in size, condition, attributes and neighborhood. One needs to do their research about houses that are sold recently in their block or neighbourhood to get a rough idea about the asking price and selling price of similar homes.
The research will only give you the idea of the average price of sold homes but you will have to determine the price of your house based on the condition, repairs, finishing and other factors involved in setting the price. Make sure that the price is not very high from the average price range and it is realistic to attract buyers.
Check if the Market Favors Buyers or Sellers:
You will know that it is a seller’s market when there is a shortage of houses or the buyers have potential to buy a house. In this case, sellers have the benefit to ask for a better price because the probability of earning gains is relatively higher.
In a buyer’s market, there is a surplus of houses for sale in the market and the number of buyers is low. It is also possible that there is not enough potential in buyers and investors to spend money which may also result in a buyer’s market.
The price of a house will obviously be different in both cases and the seller must consider this factor while deciding the price.
Ask Your Realtor while deciding the Selling Price of Home
If you are selling a house for the first time, you may not be able to decide the price as accurately as an expert realtor could do. It is always best to hire an expert to help you in selling a house because of their customer base and sales experience. A realtor has a better understanding of the market than a layman and knows the current trends, which is why they can suggest the right price. Although hiring an expert will be an additional cost but it will definitely be worth it.