There are many things to consider when pricing a home for sale. You don’t want to overprice or underprice. Think of it as a “Goldilocks” approach – you want the price to be just right.
If you price your home too high, you may not receive as much interest in your property. With online home search websites, people can filter by price. If they have a maximum budget set on a buyer’s search parameters that undercuts your initial listing price, your home will not be visible to them. For example, if a buyer’s budget is $400,000 but you list the home for $405,000, they will not see your property in their search.
On the other hand, if you price the home too low, you may not receive your home’s full value. You should not expect your property to receive multiple offers. Even in the current market, a bidding war is never guaranteed. Remember, all you need is one good offer, ideally for the full initial listing price, to succeed at selling your home and capitalize on your home investment.
What factors contribute to the value of a property? Your home’s location, the current real estate market, and of course, the home itself determine your home’s value.
Location, Location, Location
This is one of the most popular sayings in real estate. Buyers value what neighborhood and school district the home is in, as well as its proximity to restaurants, shops, and activities.
Current Market Conditions
Just like anything else, the balance of supply and demand contributes to determining a home’s price. When supply is high and demand is low, prices decrease. When supply is low and demand is high, just as the market is now, prices rise.
Home’s Specifications and Condition
This includes your home’s style, size, condition, and amenities. It is important to stay up to date with your home’s maintenance. This way, it ages better, is more appealing to buyers, and is more enjoyable for you as current homeowner.
Staging can also affect a home’s value. When a house looks “homey,” potential buyers are able to picture themselves living there.
If you are curious as to what your home is worth, please contact Fazendin Realtors. We would be happy to discuss the details of the market and how it affects your home investment.
Additionally, you can go to “What’s Your Home Worth” on www.fazhomes.com to compare Fazendin’s analysis of your home with how your home is priced amongst a few of today’s iBuying algorithms.