Choosing the right price for your home is often times the key to a quicker sale.

But it’s easy for emotions to get in the way. Some people expect their home to sell for as much as their friends did. Some think their home is the best on the market so they can get what they want. Some people do it to give more ‘negotiating room.’ Then there are those people who price a home on the value of their memories rather than the value of the home in the given market. Those mistakes could hurt you in more ways than one no matter how good the market.

An overpriced home is sure to sit on the market for too long. An underpriced home might make people think something is wrong with it.

Buyers today do their homework so should SELLERS!

There are a lot of things that go into pricing a home correctly. Here are 3 of the main ones.

  • Location, Location, Location: Buyers consider homes closer to good schools, entertainment and with a low crime rate, a better value. Are you on  a cul-de-sac? Perfect for families. On a busy street? Not so much. 
  • Comps (short for comparable sales): Comps refers to the prices of homes in your area that have recently sold. Your realtor will pull these for you to make sure your target price makes sense. Comps take into account lot size, square footage of the home, and the year it was built. You should only be looking at similar homes that have sold in your area within the last 6 months to a year. This will also give you a chance to see what else is for sale.
  • Condition and Updates: From the major repairs like a new roof or replacing an aging HVAC unit to updating carpet or tile, your home’s condition plays a big part in how much you can get for it. Keep in mind, not all updates have the same return. (we could link to an article about which improvements do best—yes or no?) Homes that need major updating or have big repairs on the horizon won’t get as much as homes that have been renovated and well maintained. The condition of the home plays a big part in the appraisal of the home too.

When a home hits the market, most of the activity comes in the first few weeks (depending on when you list). The right price on a home can create a sense of urgency in new buyers and agents. Part of the reason yo want to make sure it’s listed right is so that the right buyer see’s it. Most buyers filer homes based on a certain range.

If a home is overpriced it can sit too long making people wonder what’s wrong with it. Even worse your overpriced home can make your neighbor’s house look a like a good deal!

Of course, a home is worth what someone will pay and the market plays a role in determining the value. Sellers have the final say but take serious consideration to the knowledge your realtor offers in regards to the list price.

If you do it right, you’ll generate lots of showings right away and an offer you feel good about.