The right price attracts buyers, while a wrong price may result in your home sitting on the market, which can create a feeling among potential buyers that something’s wrong with it.4 Consider these tips to figure out the best price for your home.
Factor in local features
Good location doesn’t mean only the town or city where you live. Consider proximity to places like parks, grocery stores, restaurants, and coffee houses that may make your home more appealing. Easy access to a highway or public transportation can be valuable for commuters. However, being too close to a major road, a fire station, hospital, or community center can negatively impact value because of traffic or noise. Be sure to consider future development planned for the area as well.
Look at comps and competition
Research prices of recently sold homes in your immediate area with similar characteristics, such as lot size, square footage, year of construction, and number of rooms. Ideally, only look at homes that have sold within the last 6 months. You should also look at your competition—the listing prices of other homes for sale in your neighborhood can help you price yours appropriately.5
This is something a real estate agent generally assists with but if you’re not using an agent you can search public property records or use the “recently sold filter” on a real estate website.
Consider the condition
Your home’s condition has a major impact on its value. Has it been well maintained, or does it need major repairs and updates? Balance your key selling points with the overall shape of the home. For example, does its proximity to the beach outweigh its need for new air conditioning? Recent updates can also be factored into your price, although you likely won’t recoup the full amount you paid for most updates. The home’s condition and updates also factor into the appraisal, which can impact a buyer’s ability to get a mortgage.5
Remember to keep personal feelings out of the process. Buyers won’t know, or care, about your home’s history. It may be hard to accept at first, but your home may not be worth what you think it is. On the other hand, the right price may result in a bidding war with offers above your listing. Be sure to set aside any emotional attachments and come up with a realistic figure that makes sense.4
Be smart about the dollar amount
Consider that people search online for homes based on price ranges. If you list at $405,000, for example, those searching for properties up to $399,000 may never see your listing. The difference in price may be small, but it could make a big difference in how many people find your property through search. If your pricing is on the line between two search ranges, consider rounding down to create more exposure.
Overpricing vs. underpricing
If a home is overpriced, it usually won’t sell until the price lowers, closer to what similar homes are selling for. Underpricing, on the other hand, can potentially have the opposite effect, as it makes the home stand out from the crowd and can spark a bidding war that drives the price over what the home is worth. However, many sellers aren’t comfortable with such a risky approach—so be sure to consider the pros and cons before intentionally underpricing your home.5