Every home seller dreams of receiving top dollar offers for their property. But getting to this point takes more than just attaching a lofty price tag on a house. In fact, we would advise against it.
In this guide, Coldwell Banker Winthrop Realty explains why pricing your home correctly is essential and what steps you can take to do it right:
Why is correct pricing important when selling a house?
How you price your property can make or break your chances of completing a satisfying and profitable sale.
The biggest mistake you should avoid is overpricing your home—typically the result of relying on gut instinct or sentimental bias when setting an asking price.
Ask for too much, and buyers will ignore your listing in favor of more reasonably priced options.
If your property is idle on listings pages for too long, you will be forced to significantly drop your price. You could end up with more losses than gains simply because you started with an unreasonable asking price.
To ensure that your asking price is based on your property’s actual value and current market conditions, ask your agent to help you with a comparative market analysis.
What is a comparative market analysis?
The CMA is the process of estimating your home’s value based on the final sales prices of recently sold properties in your area. Your agent will dig up information about other Winthrop homes for sale that are comparable to yours.
Similarities that are considered for a CMA include, but are not limited to:
- Size or square footage
- Style or architectural design
- Primary amenities such as the number of bedrooms and bathrooms
- Age and condition
- Location, such as the neighborhood, school district, or zip code
- Special features and renovations
While the final prices of sold homes are the most important data in a CMA, your agent can also help you assess other factors like the number of days the properties were on the market, or the difference between the list price and the final negotiated price.
You can also evaluate failed or canceled listings. These can provide useful insights that will help you avoid potential mistakes in your selling strategies.
Expert tips on pricing your home for sale
The CMA is just the starting point in your decision-making process. Here are three expert strategies you can use to determine your final asking price:
- Get your home pre-inspected and pre-appraised. If you want other professional opinions on your property’s current value, a pre-sale appraisal will be useful. Meanwhile, an inspection will inform you of any issues that you can address to improve your home’s appeal and value.
- Use strategic numbers or a value range. An experienced agent understands the psychology of homebuyers in your area. This can be useful in trying creative pricing strategies, like setting your price at $524,900 instead of $525,000. You can also consider using a value range instead of a fixed number, with the lowest price that you are willing to accept as the starting point for negotiating later in the process.
- Sweeten the deal. Incentives entice buyers to choose certain listings over others. Consider covering their closing costs, paying for repair expenses, or buying down the interest rate on their mortgage. Consult your agent to determine the best bonuses that buyers will find appealing, as well as what you are most comfortable offering.
Get the best offers for your property when you put it back on the Methow Valley real estate market. Coldwell Banker Winthrop Realty will show you how to maximize your selling opportunities. Call 509.996.2121 or email info(at)cbwinthrop(dotted)com to learn more.