How to Price Your Home Listing
Get the most for your home when you strategically price your listing.
If you’ve decided it’s time for a home upgrade or downsize, one of the most important steps to get you into your new custom house is to first make the maximum amount from the sale of your current home! Although we’re in a seller’s market, pricing your home correctly can make a huge difference in how much you earn for your listing. Charlotte real estate professional Katie Brown helps outline key considerations for pricing your home right.
Current market
One important aspect to consider when determining the price of your listing is the current state of your local market. For example, here in Charlotte in the past few weeks, we’ve seen a significant amount of price reductions that we hadn't seen before. It’s tough to pinpoint the exact cause of that, but the most likely possibilities are that sellers are more commonly pricing too high, and that lots of people have been on vacation.
Avoiding stretch pricing
In this market, it’s tempting to price high with a mindset of, “I just want to see how much this home can get.” But with real estate, it doesn't work like that. If you severely overprice your home, that doesn’t mean you’re going to get a higher price for it. Overpricing can actually drive people away and create a stigma around the home so it could end up bringing in less than it would’ve if it had been more accurately priced!
Home details
When we price homes right the first time, we end up with fewer days on the market and more competition among buyers, which usually means the seller will walk away with more earnings than if they’d overpriced. In order to find that sweet spot for pricing, we look at a few metrics.
We determine list price based on a lot of factors but a few include price per square foot of sold homes in the immediate area, bedroom and bathroom count, size of the home and land, and upgrades like hardwood floors along with any other renovations, but we also look at how many nearby homes were sold recently and how much they sold for. Right now in a market that’s changing so much, appraisers are even adjusting value based on time on the market.
Buyer habits
Listing price strategically also involves insights into buyer habits. For example, buyers will usually look at homes in increments of $50K. That means if you price your home at $349,900, for example, you’re missing out on a tier of buyers who are searching for homes above $350K, likely lowering the number of offers — and the amount on those offers — for the home.
When we take all of these elements into consideration, we’re set up to make the most of the listing and to avoid the unnecessary stress of managing a home on the market for weeks on end.
Ready to sell your home and build custom? Start the building process with Atmos today!
