No matter how amazing a real estate agent is, no one can sell in a vacuum. The market always leads the way when trying to get the best price for your clients.
In an escalating market, it is OK to price at or higher than previously closed comparable sales. In a tipping or headed-down market, sellers want to price ahead of the market by setting the price under previous sales.
Why the price of a home matters
As one of the most important aspects of the sale, the price of a home is the starting point that births all other negotiations. If you price your home too high, you may miss out on potential buyers who are not willing to negotiate.
If you price your home too low, you may end up leaving money on the table. Listing your home correctly will help you to get the best possible price for your home.
Examples of existing comps for homes in your area
If you are not sure what comparable homes have sold for in your area, you can look up recent sales online or ask a real estate agent for help.
When using comps to price your home, it is important to remember that the most recent sales are the most relevant. You should also pay attention to the type of home that is being sold. For example, if you are selling a townhouse, you will want to compare it to other townhouses that have recently sold in the area.
If you are selling a condo, you will want to compare it against other condos that have recently sold. By using comparable sales, you can ensure that you are pricing your home correctly.
Reasons to price properties below market value
There are a few reasons why you may want to price your home below market value. One reason is if you need to sell quickly and are willing to accept a lower offer. Another reason is if the market in your area is softening and you want to attract buyers by pricing your home below recent comparable sales.
Whatever the reason, it is important to remember that you will likely have to negotiate with buyers who submit offers below your asking price.
Pricing your home above market value is not recommended unless you are in a very strong seller’s market. In most cases, it is best to price your home at or below recent comparable sales.
Overpricing a property will likely result in few buyers being interested in making an offer and could eventually lead to the home selling for less than it is worth.
How to price a home in an escalating or tipping market
In an escalating market, price the home at or higher than previously closed comparable sales. This will ensure that you get the best possible price for your property.
In a market that is tipping or headed down, sellers want to price ahead of the market by setting the price under previous sales. This will help attract buyers and boost the chances of getting the best possible price for the home.
Pricing a home can seem like a daunting task, but it doesn’t have to be. By following the market and using comparable sales, you can list your home correctly and get the best possible price.