How to Price Your Home for Sale

Selling a home requires a lot of logistic work. You have to process the paperwork for transferring ownership, taxes, and more. Plus, finding the most reasonable price for your home can also be challenging as you have to consider several factors before listing a price tag. 

How Much is the Usual Home Price in the U.S.?

The typical home value in the United States is around $320,662 as of the end of 2021, up 19.6% in the prior-year period. This is seasonally adjusted and only includes the middle price tier of homes in the country. This value is expected to grow by 16.4% in 2022.

5 Tips in Pricing a Home You Plan to Sell

The housing market is still reeling from the impact of the COVID-19 pandemic, so potential buyers are also adjusting their budgets and preferences. As a home seller, you have to offer a great deal to seal a deal much faster. Here are a few tips to remember when pricing your home for sale: 

1. Don’t price it too high or too low.

When you overprice your property, you run the risk of buyers not seeing the listing because the price is another factor home buyers look into when checking properties online. Properties usually appear most on search engines within the first month of being listed. If your home has a hefty price tag, buyers may choose to ignore it, and the longer your home sits there unsold, the less it will appear on searches. 

On the other side of the spectrum, pricing your property too low may result in bidding wars since you’re more likely to receive multiple offers. Home sellers who want to offload their property as fast as possible often use this method. However, home buyers are now more skeptical of getting something at a bargain price since it poses questions such as any underlying problems with the house.

Instead, look at the median price of homes listed in your location by doing the next tip.

2. Conduct comparative market analysis.

To assess your home’s market value, you can conduct a comparative market analysis and comparable home sales around your area so you can get as close to the value as possible. Find a middle ground within a range around your house’s market value. For example, if your home is assessed to be worth between $330,000 to $350,000, and some homes near the area are priced around $342,000 to $348,000, you can offer somewhere between $335,000 to $340,000 to open your property to attractive offers. It might not be at the upper price range, but it will get you a slot in the tight and competitive market. 

3. Take into consideration the upgrades, but don’t overvalue them.

Renovations and refurbishment add to the price tag of your home, but not all improvements yield a result in a positive return on investment. Chances are, you are unlikely to get back the whole dollar amount you put into those minor upgrades before selling your home. A little tip that will help you here is renovating or repairing what is only necessary, which is commonly around the kitchen or the bathroom area. 

Suppose your home is located in a great area and will guarantee you an immediate sale. In that case, you can bypass massive renovations, but if your home is located in a sleepy market, making a few renovations here and there could land you a potential buyer. Check if investing in home improvements around your area significantly increases the resale value and factor when putting a price on your property.

4. Don’t let your emotions get the best of you.

The idea of selling your own house is stressful and emotional because you are opening your home to strangers who will criticize the four walls you and your loved ones call home. All home buyers want one thing when purchasing a new home: they don’t want to get ripped, and sadly, these buyers will not care about a home’s sentimental value to you.

Be guided by the market research principle and separate yourself emotionally from the property. That way, you will be in sound mind to factor in all aspects, sans the memories you made at that home, to offer potential buyers a great deal. As much as possible, to treat it as what it is—a friendly business transaction.

5. Seek a real estate agent’s help or not.

Hiring a real estate agent can be convenient, especially for first-time property sellers or those with little experience in selling a home. A trusted real estate agent can feature your property to a broader audience so you can garner the best offers possible. They usually also negotiate on your behalf, so if you don’t have the time to manage the sale of your own home, it’s best to tap an agent for help.

On the other hand, if you don’t want to spend extra cash on commissions, which generally account for 5% to 6% of the total sale price, you can go directly to a property investor like Shorefront Investments. They buy houses in any condition (yes, even without repairs) and in any area. They also provide a real cash offer within 24 hours. This is a good option if you want to sell your home fast as you can also close the deal within 7-14 days or less.

Final Thoughts

Some people say they buy things when the price is right. This couldn’t be more true as we think of value for our hard-earned money at the end of the day. Therefore, we recommend that you take your time in researching and doing a market analysis to end up listing your home with the most attractive price tag for homebuyers.

However, if you don’t have enough time to do all these, you can go directly to Shorefront Investments to request a free cash offer and get an overview of how much your home is worth in the eyes of the experts in the real estate industry.