Here’s an Idea of What Goes into Pricing Your Home
So you’ve decided to sell your home and embark in this journey called real estate. And whether this is your first, second, or “I’ve lost count” run of it, there will always be something that will set this particular experience apart from the rest. So what goes into it all? Where does one even begin? Arguably, one of the first and most significant attributes toward successfully selling your home is to determine its price – one that’s realistic, sensible and appealing to buyers. Once you’ve decided upon this as a starting point, the rest will naturally follow; however, we advise that in order to have things iron out in a way that is both educational and enjoyable for you, you must first hire someone in the business. Enter: your realtor.
It goes without saying that there are a lot of factors that go into the process of selling your home as an entirety. This said, your agent knows the ins and outs of this business, and it’s important to trust them. After all, it’s their duty to not only give you the undivided attention that you deserve, but also the insurmountable amount of (pricing) tips and sound advice that you may need. For the vast majority of us, we don’t know the first thing about pricing our home to sell – but he/she will – and here’s a general idea of how it all works:
Determine the value of your property: take a moment to sit down with your realtor and agree on the value of your home based on comparable sales (i.e. what similar homes in your neighbourhood have sold for) the condition of your home, and other market considerations. Once step one is complete, and you know what the value of your home is, you can then establish the type of price range that your property will list at thus leading you and your realtor to nail down a set listing
Prepare a comparative market analysis: touched upon briefly in the above text, determining the price of your home (partially) based on certain comparables is an important thing to factor in during the beginning stages of this process. A comparative market analysis is something that is prepared by your real estate agent that will give you an idea of what has sold in your neighbourhood in the past, what is currently for sale, and what is conditionally sold. He/she will do their homework and present you with these important pieces of information, highlighting market trends as well as a detailed pricing strategy.
Consider your location: again, the aforementioned detail of knowing your neighbourhood and understanding what’s been sold, as well as what is currently selling within proximity to your home is key when it comes to determining a set listing price. In fact, the comparables that surround your location is considered to be some of the most critical pieces of usable data, as they will tell your realtor what serious homebuyers are willing to pay for a similar home in your area. This said, they’ll typically use this data to adjust your listing price based on such attributes as lot size, updates, upgrades, the overall condition of your home, and so on.
Although listing your home may seem like a tremendous step, it is indeed a very exciting feat – and a step forward. Rely on the expertise of your hired real estate agent in order to help you get through any complexities and/or stressors that you may foresee prior to committing to this process. Their job is to help you, and educate you on making this process a smooth, successful and worry-free one.