Pricing your home to sell is a bit of a balancing act. If you price too high, your home may spend longer on the market than you’d like. On the other hand, pricing too low could mean underselling your returns.
While choosing a smart listing price for your home is important, the process of finding the magic number doesn’t need to be stressful. As a multi-generational real estate team in Durham Region and the Kawartha Lakes, we’ve got countless home sales under our belt. In our decades of experience, we’ve learned a thing or two about how to price a home to sell.
In this blog, we’ll touch on some of the main points you should know about pricing your home for a smooth and easy sale.
Why Does Pricing Matter?
Some homeowners are surprised to learn that their home doesn’t have a fixed market value attached to it. When the time comes to sell, it’s up to you to decide the asking price. That said, choosing a listing price for your home isn’t as simple as grabbing a number from thin air either.
While it’s tempting to list your property at a higher price in hopes of negotiating down, picking too high a number can limit interest from potential buyers. In turn, this leads to more time on the market and can even hurt your end result down the line.
However, you won’t want to sell yourself short either. If you list too low in hopes of attracting competing buyers, there’s no guarantee of a bidding war.
Strategic pricing is a somewhat delicate process. Ultimately, it’s all about finding the sweet spot.
Need other tips about selling your home? Check out these posts from our site.
- Do I Need to Make Property Upgrades Before I Sell?
- Moving Up to a New Home – Should You Buy or Sell First?
- Attracting Relocators When Selling Your Durham Region or Kawartha Lakes Home
Have an Agent by Your Side
Working with a real estate agent is absolutely essential when it comes to pricing your home – and navigating the entire selling process for that matter! As a professional expert, it’s their job to help you get a result that you’re happy with.
With that in mind, it’s important to be selective in which agent you choose to hire – especially when it comes to experience and location. Real estate is constantly changing and in certain circumstances, the market may see conditions that it hasn’t in a long time. The more industry experience your agent has, the more they’ll be able to make important recommendations to boost your chances of a quick and easy sale. The same thing goes for location. Markets can change or fluctuate at a local level, so you’ll want to pick an agent who works in your community.
The Magic Formula
With an agent at your side, it’s time to look at the major factors that will influence your listing price. This step, also known as a Comparative Market Analysis or CMA, helps you get a better idea of where your home will stand in today’s market.
What Does a CMA Consider?
A CMA will closely analyze available and recently-sold properties in your area that are similar to yours. Next, it will factor in a wide range of details specific to your home including, the location, age, overall condition, and any special features that make it stand out.
These details, along with a little bit of industry intuition from your agent will help you come up with a price that maximizes your odds of a successful sale.
In our neck of the woods – Durham Region and the Kawartha Lakes, there is a wide range of home and property types. From farms and agricultural properties to waterfront homes, new developments, and more, no two properties are exactly identical.
Once again, you’ll want to choose an experienced local agent who understands our diverse housing stock. They’ll best understand how your home compares to others in the area and can help you price accordingly.
Selling your home in Durham Region or the Kawartha Lakes? We’ve got more advice to help you get a great result.
- Tips For Selling a Home During the Winter
- The Importance of Agent Experience
- Why You Should Sell Your Rural or Agricultural Property With a Specialist
What Doesn’t Get Factored In?
There are a lot of details that you (and your agent) will consider when choosing a strategic listing price for your home. But there are also certain things that shouldn’t influence your decision, such as sentimental value.
Your home is so much more than just four walls and a front door, it’s a big part of your family’s everyday life. If you’ve spent many happy years in your home, it can be hard to separate sentimental value from market value. While you may feel your home is priceless, it’s important to stay objective as you pick your listing price.
With local real estate when you sign up for our newsletter. Join our mailing list here to get updates on the latest listings and expert insights.