You’ve decided it’s time to list your house for sale but may be wondering how to price your home before it goes on the market? While improving the appearance of your home — improving curb appeal with fresh landscaping and cutting your lawn, decluttering and depersonalizing your home, or painting with a more modern colour — is an important factor to consider in attracting higher offers, there are pricing strategies that don’t involve any physical labour.
How to Price Your Home to Attract the Highest Offers
Price your home competitively.
Setting the right price for your home is the single most important decision you will make when deciding to sell. Go too high, and you risk turning off every buyer in the marketplace, go too low, and you risk attracting the wrong buyer and leave money on the table.
One simple but powerful technique for pricing your home is to spend time looking at comparable homes. By doing so, you will be seeing the world through a buyers’ eyes and gain a better understanding of what a reasonable listing price looks like.
Be brutally honest with yourself. Compared to the competition, what price would position your home as the best value proposition for buyers in your marketplace? The best listing price could be anywhere between “too high” and “too low” depending on the local market and time of year. This is when having an experienced agent who knows the market and how buyers respond comes in handy.
Use strategic price points.
A home buyer’s target price range is typically raised or stretched incrementally, and this allows for an easy way to get more out of a home offer. Just like you might be more compelled to buy a gallon of milk at the grocery store for $4.99 rather than $5.00, think about how you can get the most out of an offer at a specific price point. Similarly, if you’re listing your home at a specific price, like $227,900, you’re not going to attract the highest offer in that price range.
Since home buyers tend to consider homes between price ranges that are separated by five to ten thousand dollar increments, consider setting your price near one of these natural price points. For example, a price of $229,900 would probably get you exactly the same number of buyer inquiries as a price of $227,900, but moving your home down to $224,900 (the next price point down) would widen your potential buyer pool.
Consider value range marketing.
Another pricing technique that may be the ticket to more showings and higher offers is to use value range marketing. Value range marketing is a pricing technique in which you choose a listing price based on what you would sell for today if a buyer wrote you a check. You then choose another lower price — one that you wouldn’t reject if offered, but would use as a starting point negotiate towards some middle ground. So instead of listing your home at a specific price of $496,000 dollars, consider listing the home between $459,000 and $496,000.
Hire an experienced listing agent.
Not all listing agents are created equal. An agent who knows your local market and what comparable homes have sold for recently, will know your home’s potential. To find an experienced real estate agent, take the time to research local real estate agent, talk to friends and colleagues about who they recommend, and interview multiple agents before making a hiring decision. In addition, be sure to come to an agreement about a specific, documented marketing plan before signing a long-term listing agreement with your agent.
Are you wondering what homes sell for in your neighbourhood?
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