If you’re planning on selling your home soon, you may have already met with a couple of different listing agents to discuss the approximately value of your home. A real estate agent can provide you with a comparative market analysis (or CMA) that compares the features of your home to similar homes on the market and generates a starting point for the market value. That’s often the best place to start, but sometimes this market value can be a big range, or there simply haven’t been many homes for sale similar to yours on the market recently. If you’re left feeling unsure of where to price your home, consider the following tips:
1. Our first tip is to think like a buyer, and carefully consider what is CURRENTLY on the market, since these homes are competing with yours! If you live in a subdivision where there are comparable homes for sale, consider pricing your home a bit less than a similar home. Keep in mind that homes that are active on the market have not yet sold– so checking out these prices is really just informing you of the price that your home WON’T sell for. Sometimes, especially if your home might be more nicely decorated or 100 sq ft bigger, it can be tempting to price it at or above a similar home on the market—but consider that many buyers will gravitate towards the less expensive home, even if the price difference is nominal. This really, is as much psychology as anything. If you’re not in a subdivision, or there aren’t any homes currently for sale like yours, try to think like a buyer and consider what other types of homes they may like – for instance, if you live in a charming Tudor home, be sure to take a look at the sale prices of historic stone homes with lots of character. These are very different homes, but may attract the same buyers who are looking for something unique and picturesque.
2. Our second tip is to consider having your home appraised by a professional. This is an especially good idea for a truly unique home, where it can be hard to determine a sense of value. A professional appraiser will take into account a variety of your home’s features, and may be able to recommend places to add value. An appraisal isn’t much different than a comparative market analysis, but the appraisal process is completely impartial – the appraiser won’t be competing for the chance to list your home – and they are professionals who complete rigorous training.
3. And lastly, our third tip, is to carefully consider the very first price that you attach to your home. Buyers are primarily attracted to homes that have recently hit the market, so take advantage of the added exposure with a realistic, fair price. You may have heard Realtors complain that the hardest home to sell is the one that’s been on the market for 6 months or longer (regardless of how much the seller is willing to drop the price) and it’s true!
If you’re just started out and looking to get a sense of your home’s value, we’d love to provide you with a free, no-obligation comparative market analysis. Just give us a call at (215) 699-5555.