2014 real estate predictions reveal the home seller’s market in Southern California will continue next year so it’s a great time to sell if you’re ready for a move. One of the biggest decisions for sellers when it comes to putting their house on the market is deciding on a price. The wrong price can have your home sitting on the market for months on end even in a hot seller’s market, so it’s important to take your time when deciding on a price tag.
Although you will get a higher price for your home in a seller’s market, it’s crucial to be realistic and grounded when pricing it. Here are 4 tips for pricing your home in a seller’s market or any market for that matter.
1. Use an online calculator.
First Team’s house value estimator not only estimates the value of your home, it shows you the comparable homes that were used in determining your estimate. It takes your lot size, living area square footage, bedrooms and bathrooms into consideration when calculating a price for you. Remember, an online home value calculator is just the first step in deciding home price. A computer does not know about the recent renovations you’ve finished, consider nearby school districts or know that you have a pool in the backyard.
2. Compare.
Do your own research by comparing prices for other houses like yours. The key to a good comparison is looking at houses that have recently sold, not those that are currently listed. Looking at houses that have successfully sold will give you the most logical and realistic price. When looking for houses to compare yours, you should be looking at houses with similar square footage, and those in a similar neighborhood as yours – not just nearby.
First Team agents use a Comparable Market Report or CMA to help you find the right price. Each CMA report is customizable and provides a realistic home value range for your property based on similar and comparable homes in your area. This report is essential to deciding price because the agent has the ability to eliminate or add homes based on very specific criteria so you have a customized and true comparison of homes which are like yours.
3. Ask an expert.
An expert real estate agent will take the value for your online estimate and take into consideration all the things the computer doesn’t know like special features of your house and specific location i.e. your neighborhood and surrounding community. By asking a real estate agent you can get a free quote but you may opt for going to an appraiser first. The appraiser will cost you but you’ll get a third party, unbiased opinion.
It’s a good idea to hire a listing agent because they will more than pay for their commission in the end. Working with a real estate agent on average results in a home selling for 11.3% than those sold without agents. Take into consideration as well that an agent’s commission is usually around 4%. That’s still a considerable price margin of profit you’re making by consulting an agent. Don’t know where to start? Here are some tips on how to choose a listing agent without driving yourself crazy.
4. Avoid overpricing.
In a seller’s market you will probably be getting a higher price for your home, but it’s important to keep your estimates realistic. If you’re thinking your house price is too good to be true, then it probably is. When pricing your home you want to think logically, put yourself in the buyer’s shoes and decide objectively what you would be willing to pay for your house. Forget the sentimental value; it’s time to think subjectively.
Home values and prices are rising but you don’t want to overprice your home and have to reduce the price later once it’s sat on the market for too long. Most agents and buyers will see a large days on market number and assume there’s something wrong with your home because it hasn’t sold; they may simply move on without giving it any consideration. If you need help pricing your home, call or email us at First Team. We’ll set you up with a top agent in your area to help you price your home and sell it quickly and easily.
