Once you are ready to list, one of the ultimate questions becomes “How much should we list for?”
Well, this is decision that takes some time and research.
We all would like to think that we can sell our home for more than it may be worth, but we need to put ourselves in the markets’ shoes. It’s not what we think the house is worth, but the potential buyer.
A price isn’t the price until it’s sold for that amount. Until then, you just have a house for sale.
Now, let’s chat about this for a second. You might be thinking “a house has value based on the house and its features, land, etc”…and you’re absolutely right. Realtors and even private buyers will look at all factors of a particular property, but ultimately it will be a price that most likely get’s them in the door.
Home Buyers work within a budget. It’s based on their financial purchasing ability. Your price range will determine your buyer…no big news here. There are a few things to consider when building a pricing strategy.
- What are the features that set this property out from the rest? We want to look at comparable properties in your area. Square footage, lot size, area, water frontage….all these things will be comparable to some degree. From there you can look at specific features of your home
- What upgrades or specifics make the difference? Have you recently added new windows? Replaced your roof? Do you have an ensuite and no one else on the street does? Maybe you have a double detached garage and your neighbours don’t. All these differences make the difference in value.
- Market trends will determine a lot. If you’re selling in a Sellers Market, then you will have multiple people interested in your property. It may be the case where you have a housing shortage, so it doesn’t matter so much on specifics if people just need to find a home. You could be looking at bidding wars and multiple offers (the best sentence to hear ever if you’re selling). If you are in a slower Buyers Market, the buyer has more choice and they can have their pick of the litter. Too much choice means your homes value needs to stand out from the rest.
- Listen to your agent! They spend every day looking at homes, talking about the market, and know what’s going on in your area. LISTEN to them! Trust in them that the price you come to agree on is the best.
- Set a price and stick to it….for a week or two. You will know if your price is right if you have showings right away. If you do not see a good number of showings in the first week, then it’s most likely a pricing issue. Hot homes sell right away. Now, some homes do take longer for specific reasons, so this is not a hard rule, but generally speaking, you should sell quickly in a balanced market.
Ready to take the plunge? Contact us today to list your home – we’re excited to work with you to maximize your return on investment.