Deciding to sell your home is a big deal. One of the most important steps in that process is setting the best asking price. Whether you are working with an agent or listing on your own, it can be a challenge to learn how to price a house. The following guidelines should help you when you are pricing your home to sell.
💵 Asking Price vs Selling Price
The asking price also is known as the listing price. The listing price is the amount that the seller has listed the house for sale based on their goals, other sales, their home, and the demand. This is the amount the house is listed for on the Multiple Listing Service. The listing price is the amount of money the seller hopes to receive from a buyer.
The selling price is the amount for which the property sells. It is also referred to as the sale price. It may be higher, lower, or the same as the initial asking price, depending on what happens during the offer and negotiating stage.
🏡 Determine Your Home’s Value
One of the first things you can use to determine your property’s value is an online valuation tool. The automated valuation tool takes the basic information you provide and gives you a general idea of what your home is worth.
You can choose to hire a professional appraiser who will estimate the home value. They will also look at the comparable properties that are the sales, listings, vacancies, cost, depreciation and other factors for similar houses in the same market.
🙋♀️ How Your Real Estate Agent Can Help
We can help you determine the value of your home using our training, understanding of the market, and factoring in other variables. We’ll look at recently sold homes in the area, any upgrades you’ve made to the property, and the current real estate market trends. We’ll offer you valuable advice of how to set an appealing asking price, but it’s always your decision when it comes to setting the final listing price.
💲 How to Set to Right Price from the Start
Sellers may be torn between two approaches: either pricing the home lower than everyone else in the hope it will sell fast or pricing it high with the idea that you will always be able to drop the price if needed.
One of the problems of setting the price too high is that it may sit on the market without drawing the proper attention. When that happens, you end up with a stale listing. This may tempt you into lowering the price, which may catch the attention of some buyers. If this happens, a buyer may see the reductions as a sign that you’re desperate to sell and send in a low-ball offer.
Pricing too low, however, might leave money on the table. In a competitive market with lots of homes for sale, setting a price lower can grab the attention of potential buyers and start a bidding war. However, a seller can’t rely on this strategy in all cases.
📝 How to Manage the Negotiations Process
The art of negotiation involves two or more parties finding a common middle ground that is beneficial to both sides. Most real estate negotiations end up with one or more parties compromising, to settle on mutually agreeable points. A sales transaction can have hundreds of potential variables. To serve the negotiation process, a purchase contract offer can be adapted in different ways.
Various details such as the price, closing time range, seller credits, and move-in date may be up for negotiation. We’ll be happy to represent you during the negotiation process and keep your interest in mind. We have strong negotiation skills and experience that can help you reach an agreement that is beneficial.
We deliver the offers to you, and you have the choice to accept, decline, or counteroffer. All discussions are confidential. Since time is of the essence in real estate transactions, we’ll move quickly on any opportunity and present offers and responses in a timely manner. We’ll examine all strategies and solutions to meet your goals.