Properly positioning your property in the market can be a slippery slope. What happens if you don't get what you want? Is it worth waiting? Is what you want based on reality or wishful thinking? We've all been there, but today we're going to focus on how to get top dollar for your home.
Finding Your Top-Market Price
The first step to selling your home is finding out what it's worth in today's market. This can be done by contacting a real estate agent or broker in your area. They will be able to provide you with a comparative market analysis (CMA). This report will show you recent sales of similar homes in your area, as well as current listings. This will give you a good idea of where to start pricing your home.
However, this report is only half of the big picture. Your top-market price is also going to be based on the condition of your home. A home in perfect condition will be worth more than one that needs some repairs. So, it's important to take all of these factors into account when pricing your home.
After taking these two figures into account, a smart strategy is to then price the home about 10% under market value. Why? Because this will make your home stand out from the competition. Most sellers start their prices too high, which causes their homes to sit on the market for longer periods of time.
Plus, you don't want to scare off potential buyers with a too-high price tag. It is true that the longer a home sits on the market, the less it sells for. So, by pricing your home at or below market value, you're more likely to get an offer sooner rather than later.
Now, just because you have started the process with a below-market valuation, doesn't mean you are obliged to accept such an offer. It's just a negotiating tactic. But, it will give you some wiggle room to work with when it comes time to negotiate a final price.
The Final Word on Pricing Your Home
Pricing your home can be a tricky business. That's one of the reasons this simple negotiating tactic is often so misunderstood, even among the professionals in the industry. Without it, though, you're more than likely leaving money on the table.