One of the areas where homeowners looking to sell their property come unstuck is pricing it adequately. If you price your property too high, prospective buyers will be unwilling to match your valuation. Moreover, your property will sit on the market for an extended period, raising questions and concerns among those looking to purchase about whether something’s wrong with your home. However, if you price it too low, you’re going to lose out on value and possibly incur a loss. A fine line exists when valuing your property, and there are numerous factors you should consider before putting your home on the market.
For instance, many homeowners may be unaware that summers are the best time to sell a home. According to the National Association of Realtors, prices usually gain significantly during the summer. Likewise, there are plenty of other factors – some outside of your sphere of control – that will impact your property’s value.
Variables to Consider Before Pricing Your Home
Pricing your home can be a challenging endeavor. There are numerous variables that you should consider when pricing your home. These include:
Comparing Market Values
Before you slap a price tag on your property, you should check out the values of other homes in your locality. If you’re using a real estate agent, they can help you by providing figures from recently sold homes in the area. You will want to ensure that the homes you’re comparing have similar square footage as your property. Ideally, the properties you’re comparing shouldn’t vary more than ten percent in property size to your home. Although similar-sized homes may vary in price due to amenities, comparing market values gives you a solid baseline to work with, allowing you to value your property adequately.
Hire an Appraiser
If you’re trying to figure out the precise value of your home, you should consider hiring an appraiser. A professional real estate appraiser will provide you your home’s exact value. Moreover, an appraiser will also explain how they determined your property’s value and detail the changes you can make to increase your home’s listing price. You should check with your real estate broker to see if they know any appraisers to recommend to you.
Psychological Pricing Strategy
If you want to sell your property, you need an appropriate pricing strategy. One of the most pricing strategies real estate brokers commonly use is a psychological pricing strategy. If an appraiser values your home at $201,000, pricing it as such can negatively impact exposure. Most homebuyers today use online platforms like Zillow and Trulia to browse properties that interest them. These online platforms encourage the use of psychological pricing strategies like the “99 strategy.” Instead of listing your home at $201,000, you should consider listing it at $199,999. Although you’ll take a slight hit on property gains, you’re more likely to sell your home because of increased exposure. Most people search for properties under a specific price point, like $200,000 or $500,000. Therefore, you need to ensure that you price your property appropriately so that these search results don’t filter your property out.
Selling Your Property in Michigan
If you’re selling a home in Michigan, you should seek the assistance of a real estate broker. WHY LANE Coldwell Banker Realty can assist you with selling property in Michigan City, St. Joseph, and Harbert.
In addition, WHY LANE Coldwell Banker is also a certified realtor in New Buffalo.
Contact them today for their assistance with listing your home for sale in Michigan.