Determining the price for your home can be one of the most important decisions you make when selling your home. It puts a lot of pressure on you to get it “just right.” The good news is that it is possible and that we have some great ways to help you price your home!
Why so important?
People in the industry will tell you that the first four weeks your house is on the market provide the best opportunity to sell it. The buyers who have been looking and looking for the “just right” home to hit the market are chomping at the bit! So, if you have priced it right, you will have bites within days; you might even get multiple bids which is great news for you!
If you have priced it incorrectly, like too low, you may get lots of offers, but they will likely be low-ball offers that may never get you to an acceptable sale price. You could potentially cost yourself thousands of dollars in earned investment dollars. If you are in a rush and have a timeline, this may trump your need/desire to get a high return on your investment, but that is likely the only reason to purposely underprice your home.
On the flipside, if you overprice your home, you may not get any offers and potential buyers could skip right over your listing. Buyers looking at your home may decide that getting it inspected may not be worth the cost because they can find something of equal or higher value at a lower price. Likewise, if it doesn’t appraise at the price you set, buyers will have to look elsewhere for financing which will likely have them headed in another direction. In addition, your home may sit on the market too long. Remember, the first four weeks your house is on the market are the most important—overpricing can make it go over that 30-day window. All of these things will likely and ultimately cause you to lower your price. Lowering your price gives the impression that there is something wrong with the home (while that isn’t true); it could really hurt you chances of a fast and profitable sale.
How to get it “just right”
The first step is to do your own research. Start by looking at online sources to get a baseline idea of what it is worth and how much it has gone up in value. This is a great reference number. Take a look at listings online in your neighborhood. What are homes being listed for that are similar in size—square footage, number of bedrooms and bathrooms, age of the home, condition of the home, and similar location and offerings? Look at homes that have been sold in the area. What did they sell for? How long were they on the market? Also consider some of the characteristics and offerings your home has that those other houses don’t have, for example: a garage (how many cars), a nice outdoor space, built-ins, outbuildings/she-sheds, hot tubs, lot size, etcetera.
Your realtor can be your greatest asset
If you have chosen your realtor carefully, they will be the greatest asset you have in coming up with a competitive price that will get you what you want! They will continue what you have started by doing a much more thorough market analysis to help you determine a “just right” selling price of your home. They will look at what is available, what has sold, and the timeline for those sales. A good realtor will give you a competitive analysis and help you talk through the pros and cons while helping you decide on a price.
A realtor will also help to take the emotion out of pricing your home. We all love our homes, and they often are priceless in our eyes. I can help take the sentiment out of the decision and help us to make a sound business decision.
Michigan’s housing market is very good for sellers with the shortage of inventory. This can put the ball in your court, so make sure that you weigh all options very carefully. And, most importantly, enlist the help of your realtor to determine the Goldilocks of prices to help you find the Goldilocks of buyers.
If you need help, please reach out, I’d love to help you get on your way to selling your home. Call 231-894-5611 or email: firstname.lastname@example.org me any time!