How To Price Your Home

How To Price Your Home

Setting The List Price When Selling Your Home

To set a price for your home, you need to understand the current market conditions.  At The Kessler Real Estate Team, we understand the market, and we’ll provide you with a detailed market analysis and the latest data available.  

To get a sense of how to price your home, put yourself in the buyer’s shoes. Shop the competition.  If you were looking for a home, you would probably want to know how its price compared to comparable houses nearby.  These are called “comps,” and we’ll provide you with information about how much similar homes have sold for in your area. We’ll let you know the asking prices of other houses near yours, so you’ll have a good idea of the competition.  In addition, we’ll consider the asking prices of houses that have been on the market but have not sold in the past few months.  This data is part of a “Comparative Market Analysis” (CMA).  Of course, condition, amenities, and location of all comparable homes should be taken into account.

If the CMA indicates a price that you think is off, you may want to consider getting an appraisal.  A professional licensed appraiser will come to your home and make an objective evaluation as to its market value.  Although hiring an appraiser is an additional expense, it may serve you well in determining the best price to ask for your home. 

When setting your price, you need to be prepared to negotiate.  Be sure to establish your priorities and discuss them with your agent.  Are you trying to sell quickly, even if the price is a little lower than you’d like? Or are you most concerned with getting as high a price as possible?

Keep in mind that you may not be able to sell your home right away.  Market conditions sometimes favor the buyer, forcing you to make concessions to get a faster sale. When we meet to discuss your homes’ value, we’ll also discuss market conditions.  We’ll tell you about other homes on the market, as well as the average sale time in your neighborhood. Although there’s no way to predict the future, our analysis will help you know what to expect. If you are not comfortable with the average sale time, we can explain ways you may be able to reduce the time it takes to sell your home.  You can lower your asking price, improve your home’s condition, or offer favorable terms to buyers.  Cash incentives sometimes work as effectively as lowering the price. In this case, you might offer to pay closing costs or discount points or the buyer, reducing the amount of cash they must bring to the closing.  Your agent can explain these options to you.

Your list price weighs heavily on how easily you sell your home.  If you price your home too high, few buyers will take the time to look at it.  If the price is too low, you may sell quickly but end up getting less than you deserve.  Although you may think that pricing your home high will give you more bargaining room, in reality it often leads to fewer showings and thus fewer offers.

In addition to the housing market, the financing market can impact how easily your home sells.  When interest rates are low, there are more qualified buyers, making it easier to sell your home.  When interest rates are high, the pool of buyers is smaller.  When we’re working with you to set your listing price, we’ll discuss this also. If you would like to request a Comparative Market Analysis on your property contact Dean Kessler at (707) 441-1765. We look forward to working with you to get your home SOLD!

 

 CA Department of Real Estate #01313330