If you’re considering selling your house, it is the perfect time to do so! The amount of buyers currently looking for a house far outnumber the amount of houses on the market, which means that the seller’s have the advantage.
Since inventory is low, you are in a position to be more selective about the offers you accept. If you price your listing right, you could incite a bidding war resulting in multiple offers that will drive the selling price up. With the high demand of buyers, it’s time to take advantage of the seller’s market.
It can be easy to assign emotional value to your house and expect that to translate to a monetary value, but it’s important to remain as objective as possible when it comes to evaluating your house. Here are some tips for setting a competitive price on your house:
1. Get a home evaluation
To start, you’ll want to get an objective evaluation of your home. Remember, prospective buyers have no attachment to your property — it’s wise to consult with tools like Zestimate, SetValue or PennyMac’s home value estimator to get an unbiased estimated value.
If you have projects you want to complete to spruce up your curb appeal or if you want to make renovations before listing, you should get an estimate on SetValue to make sure that the additions will be economical. SetValue is the only simulator that gives you a home evaluation based on different scenarios or renovations.
You could also hire an appraiser through your bank for an objective valuation. The appraiser will set an estimated value on your house based on its structural integrity, amount of living space, and the overall health of the home. The value will be based on the prices of similar properties that were sold recently.
2. Find comparable houses
You can set a price range for your listing by finding comparable houses in your nei ghborhood that have been sold in the last three months. This will give you an idea of the market price for your property. When you’re looking at other houses, be sure to find ones that have a similar footprint - ones that have the same square footage, offer matching amenities, and are located in similar neighborhoods.
You can request a comparative market analysis from an agent or a broker price opinion in order to measure the market pricing. These reports take into account the details of the house, the price similar houses sold for in the last three months, and the amenities of the house. Generally, these reports will provide a value for you to base your listing price.
3. Use pricing ranges for boosted visibility
If you’re on the cusp of a price bracket, it could be beneficial to price your listing just a smidge below the market price or price range — especially in a seller’s market! Buyers will be more willing to bid above the listing price if the house is listed at a seemingly low price point. Multiple offers have the potential to drive the selling price up.
When it comes to listing your house, it’s best to get a few estimates before setting a price. Whether or not you choose to hire a seller’s agent, there are many tools available online to help you gauge the housing market. A strategic listing price is key to setting your listing apart from the competition.
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