22 Aug How to Price Your House for Sale
You’ve decided to sell your house and want to buy something else. Maybe you’re downsizing or just moving for a job. It’s hard to plan your life when you get stuck at step one: how much is my house worth?
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What should you consider?
Even if you have the best real estate agent you alone ultimately decide the price your house is listed at. This is where so many people struggle. It is paramount that you are knowledgeable about the state of the market. Buyers will hold a lot of power in what you will ultimately price your house at, depending on a variety of things. Look at Edmonton real estate market reports to establish a baseline or have a candid conversation with your REALTOR®.
Competitive Market Analysis
You may have heard of a “comparative market analysis” or “comps”. Comps is a fancy way of looking at houses similar to yours that have recently sold in your area.
A word of caution: no two houses are the same. A house that sold a year or two ago could be worth significantly less than yours! Even if you have sold data, you will need to compare some basics like square footage, location, condition, and features. If a house up the street sold for a high price but had a pool and a double garage, you won’t get the same price.
In contrast, researching the listing price of houses similar to yours to solely make a decision about how you will price your house can be unsuccessful. A listing price does not mean that the house will actually sell at that price. List too high and you will have to reduce the price repeatedly. People may start to wonder what is wrong with your house, especially if there are significant or repeated drops.
Overpricing your house could result in you selling for less than if you were to price your house properly from the outset. Pricing your house too low could mean getting a quick sale but leaving a lot of potential profit on the table.
What about Renovations?
If you are looking to stage your home before you list, a bit of a face lift can be an effective tool in winning a sale. That being said, if a renovation or repair doesn’t have a significant impact on the value of your property, they become futile and you can end up overinvesting.
If you put in $100,000 of repairs and renovations into a home worth $400,000. You may want to price your house at $500,000 to cover the upgrades even though similar houses on the same block are selling for $430,000.
Renovations or repairs may not return dollar for dollar when it comes time to sell. Don’t expect the $30,000 renovated kitchen to add that same value when it comes time to sell a year later. Try painting the walls to freshen up the atmosphere or do some landscaping in your yard for some extra curb appeal.
This is where the value of a great real estate agent can make a big difference. An agent who says they can sell your house for $50,000 more than the next highest suggested listing price may just be trying to get your business. A great agent will show you the comps and why they think your house will sell at the price they suggest. Separate the facts from the emotion and take the time to read through why an agent suggests you list a particular price.
Talk with a REALTOR® today to get a consultation, advice or general recommendations. Keylo Care offers guidance, personalized reporting and a free appraisal for your house, so you can make an informed decision about how to price your house from the start.