Establishing the list price that will attract the most buyers at the best price is the first step in developing a marketing plan. You want your home at a listing price that is not too low or too high, but just right, based on numbers and facts. When a home is priced too low, you will not maximize your profit, and buyers may perceive that something is wrong with it. However, if the price is too high, buyers may avoid viewing your home because it’s not in their price range. Interestingly enough, asking too much might ultimately be more costly than asking too little for a property. Overpricing your home is one of the first big mistakes you can make; it will increase your number of days on the market, and buyers look at this.
I prepare a Comparative Market Analysis by analyzing the prices of homes that have recently sold and that are similar to yours in size, features, and location. A review of homes that are currently listed for sale will help to assess the competition. My knowledge of current trends in the market is the final determinant of your home’s listing price. I also will create an automated email alert for similar listing coming on the market so we can stay up to date on any new competition for your buyer’s attention. I always educate my sellers on the need to stay up to date on issues or situations unique to your home that could help it sell.
Several factors go into establishing the selling price of your home:
- Location, Location, Location. This familiar adage is well known for a reason. The location of your home is the foremost contributing factor in its pricing. A small house in a desirable, high-demand area may sell for more than a larger home with more features in a less sought after area. Convenience to schools, town centers, retail spaces, and recreation, for example, may affect the final selling price of your home.
- Condition. The condition of your home is critical in determining the price. A well-maintained, clean house will present better than one with much-needed outstanding repairs. Curb appeal, or a buyer’s first impression of your home’s exterior and landscaping, may determine whether or not a showing is successful.
- Amenities. A home that has features that are sought after in your area will dictate a higher price.
- Price Per Square Foot. The average price per square foot may be taken into consideration when pricing a home, but it is not a sure-fire method.
- Home Warranty. A Home Protection Plan that protects a buyer during the first year of homeownership may add salability to your home. (This is optional, sometimes comes up during the negotiation.)