Autumn is fast approaching, and it’s a common time to sell your home. One of the most important decisions home sellers face is how much they should list their home for. Picking a good listing price can help you sell your home fast while retaining equity in the process. Follow these tips to learn how.
Know your market
When you sell your home, it is smart to begin with a comparative market analysis. Odds are, your realtor will prepare one as soon as you explain that you’re interested in selling your home. A comparative market analysis will show you similar homes in your neighborhood and what those homes have sold for in the recent past.
In addition, you’ll see how long homes took to sell and whether they sold for less than the initial listing, which is a sign they started out overpriced. This will give you a good sense of what might be “too much” for your neighborhood. Thus, you can avoid the mistakes your neighbors made when they priced their homes.
Sell your home with the “99” strategy
One common tactic to sell your home fast is to price it just below where you’d like it to be (by about $1,000). For example, if you and your real estate agent believe your home is worth $400,000, consider listing it for $399,000 instead.
There are a couple of reasons for this. First, marketing research has shown that there’s a psychological effect where people perceive they’re buying a home for “less” than the actual amount they’re paying. A $401,000 house may be only $2,000 more, but it’ll be perceived as much more expensive than $399,000.
Second, when you look to sell your home, you want to appear in as many searches as possible. Pricing your home just below rounded numbers will make sure your home appears in more searches, which means more potential buyers.
A side note about the psychology of pricing — don’t get too creative about asking prices. For example, if you and your realtor believe your house is worth $400,000, don’t list it for $398,282. Again, research shows that it can have a negative effect on buyer perception as buyers wonder why you chose that specific number.
Most search websites group home searches by $50,000 increments, which buyers use when they are filtering. As briefly mentioned above, pricing your house right below the next $50,000 step will attract more potential buyers due to increased visibility – you’ll pop up first in that exact range.
While you’re at it, consider providing as many details as possible in your house’s online profile with price breakdowns. This will satisfy more research-minded buyers. Answer all price-related questions before they’re even asked. Then during negotiations, you can focus on creating a vision of your home for potential buyers, rather than haggling over an exact figure.
Create a lot of interest
When you sell your home, you want every dollar it’s worth, and that’s natural. However, it can cost money to let it stay on the market too long, so it’s best to price your home a little under what comparative homes are selling for. Knocking a few bucks off the list price can create a lot of buzz, and you’ll find plenty of potential buyers interested in landing a deal. You may even create a bit of a bidding war as buyers fall in love with your home.
It’s an exciting time to sell your home, even more so because it usually means you’re buying a home, too. Whether you’re looking for a starter house or it’s time for your family to find your forever home, the experts at First Centennial Mortgage are always ready to help out. Contact a mortgage loan officer today to find out how we can help you with a home financing option that suits your needs.