Selling your home. Sounds easy enough, right? But when you really start to think about it, the list of things to do can get long. Whether you’re selling to upgrade or downsize, getting the best price for your home is important. It can make or break a deal and determines how long your home stays on the market.
One of the first steps in selling your home is choosing a listing price. Your listing agent will prepare a Comparative Market Analysis (CMA). A CMA compiles recent sales from the area / your neighborhood and includes factors such as home details (number of bedrooms and bathrooms, square footage, etc.), number of days on the market, and the final selling prices. Similar square footage (within 10% of your home’s square footage) and similar age also play into if a property is comparable to your home. Once these factors have been reviewed and an agent has toured your home, a listing price can be decided upon.
Everyone wants to maximize their investment (as they should), but overpricing a home is ineffective. Be realistic when choosing your final number. If you have time to sell your home, then listing your house slightly higher (but still reasonable) is a better option. This can take longer to sell a home, but allows the seller the opportunity to make the most of their purchase.
If you are ready to move or need to quickly relocated, consider choosing a list price 10% below the area’s comparable homes. This will make your home stand out against the competition and encourage a quick sale. As a seller, it is important for you to know your “bottom-dollar” for selling your home.
Other things to remember and consider include the time of year and the overall market. Spring is the best season to list your home. Listing in the winter and holidays can be more difficult. The market can affect your home sale as well. Pay attention to how long other homes are staying on the market. If you list your home and don’t have an offers, it is okay to reduce the price. Sometimes it even makes sense to take your home off the market for a few weeks and then re-list with a new price.
During this process, make sure you are comfortable with and trust your listing agent. They should be actively communicating with you on a regular basis to provide feedback from showings and other agents and buyers that have viewed your home. Don’t be afraid to voice concerns or ask questions – your listing agent works for you!