How do you price your house for sale? How much should you ask for when selling your home? It is a common question.
Think of your home’s listing price as its most powerful marketing tool. If you really need to sell, setting a low price can help your home stand out. That said, you don’t want to go overboard and price too low. The same goes for trying to make money on your home sale. You’ll want to be cautious of letting visions of dollar signs cloud your vision.
When selling in a seller’s market, you can often get your full asking price. That is because buyers are competing for scarce inventory. However, this means many buyers may instantly cross a home off their list if the asking price is over budget.
Find the sweet spot that prices your house fairly within the market but also ensures you make the maximum profit. It’s better to price in line with similar properties than aim too high and lower your price later.
As is the case with any big financial move, research is key. You’ll need an inventory of houses in your area that have sold and for how much, going back six months. These are referred to as “comps,” or comparable sales. Your realtor can access the MLS system to help you with this task. Look at which properties are the most comparable to yours, and use their final sale price as a guide.
Take stock of what you still owe on your mortgage, or what equity you have in your home. Then, do the math to find out your bare minimum break-even price, and add on from there.
What updates have you made while living in your home? Some updates, like pools, don’t add much to a home’s value at all. Interior design doesn’t boost asking price, either. Upgraded kitchens, bathrooms and flooring typically yield the highest return on investment.
Consider attending open house viewings in your neighborhood if there are a lot of homes on the market. It’s not as fun as looking at homes you might aspire to buy, but it can be an eye-opening experience. You’ll get a sense of how your house compares for buyers looking at move-in ready properties in your price range.
Check out all of our posts in our home buying and selling series!
The blog and its opinions are expressly that of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.