After the Renovations: Choosing the Right Price for Your Home

You’ve made all of these amazing updates to your home, and now it’s come time to sell it. When it comes time to sell your home, the first step is to choose the right selling price. Setting the right price is key to selling as quickly as possible.  Overprice it, and your house will sit on the market. Underprice it and at best you’ll lose money, at worst potential buyers will wonder what’s wrong with your home.

 

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Here are 4 key factors to keep in mind that will help you set the right price and make the most of your home sale.

1. Be Objective.

This is the golden rule when choosing your sale price.It’s hard. You love your home; you’re attached to it. But in order to determine the best price possible, you need to see it through potential buyers’ eyes.

Jane Kennedy from ComFree Alberta, a real estate network in Canada, says, “be critical, methodical and careful when you consider all the options, upgrades and other features of your home.”

2. Market Conditions.

Your property is only worth as much as buyers are willing to pay for it. If there is a glut of homes for sale in your area, then buyers can afford to be picky. Your price will have to be competitive.

If there are few sellers and lots of buyers, then you can afford to price your property a bit higher (but never too high!).

A Comparative Market Analysis performed by an accredited professional will help you determine the market factors that will influence your decision.

The CMA will look at comparables, current homes listed for sale, recent sales and other factors to advise you on the best price for your property.

A CMA is also a great tool for justifying your asking price with buyers.

3. Your Timeline.

When setting your price it’s important to consider how quickly you need to sell your home.

If you need to sell quickly, pricing your home at the lower range provided by a CMA will result in a quicker sale.  Jason Fitzpatrick from LifeHacker recommends, “setting a low price to attract buyers in the critical first week.”

Note that pricing a house too low also has its dangers. If a home costs much less than other houses in the neighborhood, potential buyers may see that as a sign that something is wrong with the property for sale.

Also note that overestimating the value of your home at the beginning will cause it to sit longer on the market. Try to set as unbiased and objective a price as possible from the get-go.

4. Your Bottom Line.

Finally, decide on the lowest selling price you are willing to accept and do not go under that goal.

Consider the costs involved with the transaction that will be cut off your final earnings. These include the mortgage, notary fees and advertising costs.Alan Macdonald, a REALTOR®,writes about the hidden costs involved when selling your home. These can include an agent’s commission, unless you decide to sell your home For Sale by Owner or with a flat-fee brokerage.

Selling your home is an emotional process. However, by evaluating your home objectively and setting the right selling price from the start, you can minimize the time your home sits on the market and maximize your potential for multiple offers.

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