A question people ask me a lot is, “How much should I list my home for?” When it comes to setting a price, you must first understand how motivated you are as a seller. If you need to sell immediately, then you have to look at the comps of what actually sold in your neighborhood in the past few months, and you have to come in five to ten percent below that price. That’s just how it goes.
But I do recommend, if you want to get the highest price, be patient, but make sure you get three opinions from three local brokers. They must be local brokers and they must have actual sales in your market in the past few months.
You want to work with brokers who have track records and then settle on the average price of the three. And if you want to work with one of them, pick the person who intuitively spoke to you in the first three seconds.
If you’re not in a massive rush to sell your home, here are some factors that should help you determine the listing price.
Embrace the idea of fair market value. This is, simply put, the price a buyer would pay, and a seller would accept in an open and competitive market. It’s not an emotional assessment of what your home means to you, but rather it’s a practical determination of what the home could go for in the current market conditions.
When thinking about setting the price, be realistic about your home’s condition and features. Listing it too high can deter potential buyers and lead to your property sitting on the market. Conversely, pricing too low may create a perception of desperation and raise red flags about the property’s quality. Remember that the goal is to maximize your return while appealing to a broad range of buyers, so strive for a balanced offer.
Consider if your home needs improvements and repairs, and how much that might cost. If you’ve recently upgraded or renovated part of your home, these improvements can add significant value. However, if your home needs significant repairs, you probably want to adjust the listing price accordingly. Be transparent about your home’s condition to build trust with potential buyers.
Be prepared for – and be comfortable with – negotiating. Buyers often expect to haggle, and having some flexibility in your asking price can help close the deal. So, don’t be afraid to list your home slightly above its perceived value, so you can negotiate without sacrificing your bottom line.
In conclusion, determining how much to list your home for is a delicate, and often tricky, balancing act that requires a blend of research, objectivity, and a touch of instinct. By understanding the market, evaluating your home’s unique features, and being open to negotiation, you can position your property for a successful and satisfying sale. Remember, it’s not just about the number—it’s about finding the right buyer who sees the true value in your home.