One of the first and most important decisions you'll make when you put your home on the market is the asking price. If it's priced too high, many won't even consider looking at it. Home buyers are savvy. They do their homework and have a general idea of what homes are worth before they begin their home search. If it's priced too low, it will go fast and you may always wonder if you should have gone higher. When it comes to pricing your home it's both an art and a science. Here are a few tips to consider getting it right.
1. GET A REAL ESTATE AGENT
This seems like an obvious choice. An experienced agent will know how to price a home. They will be able to pull up actual comparables in the area. While anyone can get a Zillow or Trulia estimate of what your home is worth, those sites do not get completely accurate information. An agent will also know the real estate market and have some insider information as to what things are going for.
2. CONSIDER THE TIME OF YEAR
Real estate is a game of supply and demand. When demand is high, home prices increase and vice versa. Supply and demand fluctuate throughout the year. In the spring months there is always an increase in homes on the market. Generally it stays strong through the summer and into fall. However, once winter and the holidays hit things slow down. This will affect how you should price your home.
3. LEAVE ROOM FOR NEGOTIATION
You have to be careful with this one because you don't want to over or under price the home. However, it's a good idea to leave a little wiggle room for negotiations.
4. INTEREST RATES
When interest rates are good, more people tend to be home shopping. This makes it an ideal time to have your home on the market for a good price. People get nervous and back off when rates start to climb and many hold out for them to go back down.
5. IF IT'S NOT GETTING INTEREST, DROP THE PRICE
Pay attention to what happens after you list your home. Is it getting showings, but no offers? Are agents mentioning that it's priced high? If these things are happening it's probably an indication you are asking too much and you should drop the price. Making this decision quickly could help potential buyers change their mind and put in an offer. If the home is priced too high it will just sit on the market and that never looks good.