How to Price Your Home Competitively So It Doesn’t Sit On Market Forever

Zillow recently reported that 36% of homes nationwide sold in January did so at a loss.  That makes for bad real estate times.  But, alas, sometimes we have to move regardless of what the market is doing.  Our lives change and we can’t stay in our homes for whatever reason.

Sellers are making some mistakes when putting homes on the market these days, which is understandable in a very risky and unfavorable market.  But when we let our fear and hesitation get in the way, we make bad decisions.

Here are four tips you want to consider in pricing your home for sale:

First, when looking at the comparable properties, don’t limit yourself to what has recently sold.  The best way to go about pricing competitively is to look at current prices of homes on market.  If these homes are sitting on the market, price yourself lower to sell.  Think of it from a buyers’ point of view. When they look and compare several homes one Sunday afternoon, yours should be the best of the lot in the same price range.

Second, be honest and realistic about your upgrades.  Yes, you did your kitchen over with the latest bells and whistles, but that was in 1998.  Seriously, we all think our homes are somehow better, (agents are the worse culprits when it comes to our homes), but other homes have advantages over yours, as you house has advantages over others.  Make a list of everything that you have improved in the home and review with your agent what is worth a premium.

Remember also what kind of buyer will be buying your home.  A young family may appreciate a new water tank, a single person looking to do some customization may not care.  Who is likely to buy your home and what do they value most?

Third, in this market, you are going to have to forget what you paid as a basis for pricing your home.  One number has nothing to do with the other.  If you are losing money, make sure it is worth it to make the move you are trying to make. This is a calculation only you can do.  Just don’t try to push your home into a market that won’t accept it.  It is frustrating and exhausting.  Know your limitations ahead of time.

Fourth, listen to your agent about pricing.  Chances are that your agent has sold homes or at least seen some similar properties to yours.  Your agent spends a lot of time on MLS and talking to fellow agents about home prices and home sale.  It is probably one of the only thing your agent discusses with anyone.

If you don’t think your agent can price well or does not have your best interest, well, you need another agent.  If you hired someone you trust, then work with him or her.

Good luck!

How long has your house been sitting on the market?

 

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