Deciding to sell your home can be exciting, stressful and confusing, especially when it comes to the list price. You might be cashing out on equity for retirement, downsizing, upsizing or looking for land. Whatever your situation, you want to be sure you are getting the best return on your biggest investment: your home.
There are many factors that go into a smartly priced home. It's not as easy as Zillow might make you think. Getting the list price correct right out of the gate is crucial to a successful sale in this complicated market, and the calculus can be complex.
Why is getting it right so important? When a home is not priced correctly, it may sit on the market longer than anticipated and in a sense, become stale. This may motivate the seller to reduce the price hoping to generate renewed interest. While this strategy can have its benefits, it can also signal to consumers and real estate professionals that the seller is getting motivated and maybe the property has inherent issues that are affecting its salability. This can have a negative impact on the final selling price. As the market is shifting, we are inevitably seeing more price reductions. According to the MLS, price reductions of local residential listings increased by 43% in May, with an average increase in price reductions at 27% from January to May of this year.
Making the price determination even more complicated are interest rates. Interest rates have nearly doubled since the pandemic started and it is impacting buyers' budgets. They may be able to afford less than they could a few months ago.
So, what's the best path forward? There are a few things you can do to help ensure you list your home at a price that reflects the market and will bring buyers to your door.
Work with an experienced seller's agent.
Hire a licensed, experienced real estate professional who knows your market, will provide a complete market analysis, and be willing to do the little fixes, cleaning and staging before your property goes on the market.
Get a comprehensive market analysis, or CMA.
In this analysis there should be a study comparing your home's location, condition, size, year built and other important specs to other properties that are currently for sale, pending or recently sold.
Write a contingency plan with your broker.
A tried-and-true strategy is writing a contingency plan that states the seller and broker will reassess at stated time intervals and reduce the price accordingly if an offer has not been accepted. This puts a plan in place from the beginning before emotions may affect your decision-making process.
Clean your home inside and out.
We get one shot at a first impression. Especially with buyers seeing properties the first time in photos online, it is essential to have your home "show ready." De-clutter, clear off counters, shelves, pack it up and pack it out.
Bottom line? Experience doesn't cost, it pays! With an experienced seller's agent, you can get your home priced correctly for the current market.