When you’re selling a home, your REALTOR® will talk to you about pricing – how much you should ask, how low you’re willing to go, and what kind of profit you hope to make through the sale. Setting the right sales price from the start can help you sell quickly, and that’s what most people are going for.
So what is the secret to pricing your home right?
Here’s what you need to know.
How to Price Your Home to Sell: What Most Ellicott City REALTORS Won’t Tell You
Many real estate agents let their clients play a guessing game on price, but that’s the wrong answer. Pricing a home properly is more of a science, and it depends on several factors, including:
Your real estate agent will combine all these factors and compare them to other homes. The comparison – called a comparative market analysis, or CMA – is very important. Your agent will look at:
- Homes currently on the market
- Homes that recently sold
- Homes that were on the market but never sold and were removed from the market
The point of this research is to determine what buyers are willing to pay for a home like yours. The bottom line is that your home is only worth what a buyer is willing to pay for it, so it’s important that your agent figures out that “magic number.” Naturally, there will be a little leeway in both directions (up and down) that you can use to your advantage. However, there are a few things you need to consider when your real estate agent gives you a good sales price for your house:
- Remember that if you price your home too high, you’re cutting out eligible buyers
- Pricing your home too low means you’re leaving money on the table
Pricing your home too high can cut out a huge swath of eligible buyers who would make you a great offer. That’s partly because many people set an upper limit on their home searches, and because those same people begin searching for homes online. If your agent tells you that your home is likely worth $300,000 but you really want to price it at $305,000, you’re facing two issues. One is that when someone types $300,000 into a search as a “Max Price,” they’re not going to see your house. The other is that when someone searches for homes worth $300,000 to $310,000, they’ll see your house – but they’ll compare it to all the other homes, which are properly priced, and yours will come up lacking.
Are You Selling a Home in Ellicott City?
If you’re thinking about selling your home in Ellicott City, I can help. Call me at 443-955-1227 or 410-465-5822 to discuss what needs to happen so you can sell quickly and at the right price!
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